Crop Revenue Coverage (CRC)

A revenue policy such as Crop Revenue Coverage (CRC) provides protection against lost revenues caused by low yields, low prices, or both. As an integral part of your marketing program, a CRC policy insures your profitability, not just your expenses. You can market your crop during the growing season, when prices are usually higher, knowing that you have the revenue guarantee to cover bushels committed in forward pricing or other market options. You have an established revenue guarantee per acre, and, unlike a pure yield-based crop insurance policy, you may net a higher indemnity payment.


Overview

Guarantees revenue per acre with comprehensive protection against weather-related losses and certain other unavoidable perils, including crop price reductions.

Protects against low prices, low yields, poor quality, late planting,1 replanting costs2 or when planting is prevented.

Final guarantee set at the higher of the minimum guarantee set at planting, or the harvest guarantee.


Benefits

CRC adds more security to your marketing plans by guaranteeing both upside and downside revenues, with a minimum revenue guarantee.

Calculates losses based on the harvest market price, to help protect your revenue and satisfy your contracts despite low yields.

Provides a bottom-line revenue guarantee for operating loans.

Prices set using regional commodity exchanges to more closely reflect area price differences.

Available for corn, grain sorghum, cotton, rice, soybeans and wheat.


Loss Triggers

Pays when harvest revenue is less than final revenue guarantee.


CRC Example

Situation: Loss of production, higher prices at harvest.3
Projected Crop Price: $2.23
Final Revenue Guarantee:
(APH (180 bu.) x Level (.65) x Harvest Price ($2.80) = $327.60/Acre
Harvest Price: $2.80
Yield: 90 bu./acre
Value of Production: Yield (90 bu.) x Harvest Price ($2.80) = $252.00/Acre
Indemnity Payment: Final Guarantee ($327.60) – Production Value ($252.00) = $75.60/Acre

1Subject to crop policy provisions.
2Not available on all crop policies.
3All examples assume the policyholder has 100% share of the insured crop.