Crop Insurance Today Fourth Quarter 2022 - 30

CROP INSURANCE
Yield
Abbreviation Code
Protection
YP - Plan 01
YP provides protection against a loss
in yield due to unavoidable, naturally
occurring events. For most crops, that
includes adverse weather, fire, insects,
plant disease, wildlife, earthquake,
volcanic eruption, and failure of the
irrigation water supply due to a naturally
occurring event. Like the APH (Actual
Production History) plan of insurance,
YP guarantees a production yield based
on the individual producer's APH. Unlike
the APH plan of insurance, a price for
YP is established according to the crop's
applicable commodity board of trade/
exchange as defined in the Commodity
Exchange Price Provisions (CEPP). The
projected price is used to determine the
yield protection guarantee, premium,
any replant payment or prevented
planting payment, and to value the
production to count. The coverage and
exclusions of YP are similar to those for
the APH plan of insurance. An indemnity
is due when the value of the production
to count is less than the yield protection
guarantee. The main crops covered
under this plan include barley (includes
malting type), canola/rapeseed, corn,
cotton, grain sorghum, peanuts, rice,
soybeans, sunflowers, and wheat.
Revenue
Protection
RP - Plan 02
RP provides protection against a loss
of revenue caused by price increase or
decrease, low yields or a combination
of both (for corn silage and rapeseed,
protection is only provided for
production losses). This coverage
guarantees an amount based on the
individual producer's APH and the
greater of the projected price or harvest
price. Both the projected price and
harvest price are established according
to the crop's applicable commodity
board of trade/exchange as defined
in the Commodity Exchange Price
Provisions (CEPP). While the revenue
protection guarantee may increase, the
premium will not. The projected price
is used to calculate the premium and
replant payment or prevented planting
payment. An indemnity is due when
the calculated revenue (production to
count x harvest price) is less than the
revenue protection guarantee for the
crop acreage. Crops covered under this
plan include barley (includes malting
type), canola/rapeseed, corn, cotton,
grain sorghum, peanuts, rice, soybeans,
sunflowers, and wheat. (Please note
the " Maximum Price Movement "
for rapeseed and corn silage on the
following page.)
RP w/Harvest
Price Exclusion
RP-HPE - Plan 03
RP HPE is similar to RP, however RP HPE
coverage provides protection against loss
of revenue caused by price decrease, low
yields, or a combination of both. Unlike
RP, the revenue protection guarantee for
RP HPE is based on the projected price
only and it does not increase based on
a harvest price. Crops covered under
this plan include barley (includes malting
type), canola/rapeseed, corn, cotton,
grain sorghum, peanuts, rice, soybeans,
sunflowers, and wheat.
28 FOURTHQUARTER2022
Crop Insurance Today Fourth Quarter 2022

Table of Contents for the Digital Edition of Crop Insurance Today Fourth Quarter 2022
