Group Risk Plan

Why choose the Group Risk Plan?
When producers throughout your county face yield losses, chances are you face losses, too. So unlike crop insurance policies written based on your actual yields, Group Risk Plan coverage is based on an expected county yield for insured crops. The expected county yield is calculated annually, using years of data from the National Agricultural Statistics Services (NASS).

You select a coverage level and a dollar amount of insurance per acre. You don’t need to supply information about your own average yields, just the number of acres you’re planting, your share in the crop, and which crops are being planted. A “trigger yield” is calculated for your policy by multiplying the average county yield by the coverage level you selected (from 70 percent to 90 percent of expected county yield). Should the NASS average county yield fall below this trigger yield, you may be eligible for a loss payment. Indemnity payments are made after the announcement of the NASS county yield, which is generally several months after the harvest of the crop.  

Protection against widespread loss of production of the insured crop in a county.
Developed on the basis that when an entire county’s crop yield is low, most producers in the county also will have low crop yields.

Your individual yield could be lower than the average county yield, resulting in no indemnity payments.

Your individual yield could be higher then the average county yield, yet you still could collect an indemnity if the county yield triggers a payment.

Generally less costly than Multi-Peril Crop Insurance (MPC) coverage based on your actual production history. 

Simplifies risk management because you only need to provide the number of acres planted by the acreage reporting date.

Production history or evidence of loss is not required because loss payments are based on the county-average yield. 

Loss Triggers
Pays when the NASS-calculated county yield falls below the trigger yield. Indemnity payments are calculated several months after harvest, when the NASS data is released.

Group Risk Plan Example
Situation: County yield falls below trigger yield. 2

Purchased Coverage: $120/Acre
Acres Farmed: 200 Acres
Policy Protection: Coverage ($120) x Acres Farmed (200) = $24,000
Expected County Yield: 150 bu/Acre
Coverage Level: 90%
Trigger Yield: Expected County Yield (150 bu./Acre) x
Coverage Level (90) = 135 bu./Acre
Final County Yield: 125 bu./Acre
Triggering the Claim: Trigger Yield (135 bu./Acre.)-
Final County Yield (125 bu. Acre)= 10bu./Acre
Indemnity: Production Shortfall (10 bu./Acre) /
Trigger Yield (135 bu./Acre) x Policy Protection ($24,000) = Indemnity ($1,777)

2 All examples assume the policyholder has 100% share of the insured crop. Different rounding rules may apply to different calculations and/or products.

Harvest Risk Management is an equal opportunity insurance provider. 

Non-Discrimination Statement