Why choose Revenue Protection?
Revenue Protection Provides coverage against lost revenues caused by low yields, low prices or both. As an integral part of your marketing program, Revenue Protection helps insure 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 option. You have an established revenue guarantee per acre, and unlike a pure yield-based insurance policy, you may net a higher indemnity payment.
- Guarantees revenue per acre with comprehensive protection against weather-related losses and certain other unavoidable perils, including crop price reductions.
- Protections against low prices, low yields, poor quality, late planting, replanting costs or when planting is prevented.1
- Final guarantee is set at the higher of the projected price guarantee or the harvest price guarantee.
- Projected price is determined by the Commodity Exchange Price Provisions (CEPP) and is generally available 10 days prior to applicable sales closing date.
- 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 help satisfy your contract despite low yields.
- Bottom-line revenue guarantee can help you secure operating loans.
- Available for basic, optional, enterprise or whole farm* units.
- Prices are set using regional commodity exchanges to more closely reflect area prices differences.
*if allowed by Special Provisions of Insurance
Wheat, barley, malting barley, corn, grain, sorghum, soybeans, cotton, rice, sunflowers and canola/rapeseed.
Revenue Protection pays when your harvest revenue is less than the final revenue guarantee.
Revenue Protection Example
Situation: Loss of production, higher prices at harvest.2
Projected Crop Price: $3.50
Harvest Price: $4.10
Final Revenue Guarantee: APH (180 bu,) x Level (0.75) x
Harvest Price ($4.10) = $553.50/Acre
Harvest Revenue: Yield (90 bu.) x Harvest Price ($4.10) = $369.00/Acre
Indemnity Payment: Final Guarantee ($553.50)-
Harvest Revenue ($369.00) = $184.50/Acre
1Not available on all crop policies
2All examples assume the policyholder has 100% share of the insured crop,
Different rounding rules may apply to different calculations and/or products.Income Protection (IP)
Income Protection (IP) is designed to protect your revenues against a loss in production, declines in market prices, or both. Similar to Revenue Assurance (RA), but only available on enterprise units. Revenue is protected at the enterprise unit level, and your guarantee doesn’t increase if the market price increases. Both projected prices and harvest prices are futures-based.