Why MPCI?

With Multiple-Peril Crop Insurance (MPCI), you can purchase coverage to guarantee yields based on your actual production history (APH). MPCI provides protection against losses for most crops from nearly all natural disasters. Less expensive than revenue-based policies, an MPCI policy protects against yield and/or quality losses from many different perils, including drought, excess moisture, cold and frost, wildlife, disease and insects. Various levels of coverage are available. 

Overview


Comprehensive protection against weather-related causes of loss and certain other unavoidable perils. 

Protects against low yields, poor quality, late planting, replanting costs or when planting is prevented. 

Guarantee is based on producer’s own yield records. 


Benefits

Provides a source of income when low crop yields are caused by covered perils. 

Adds security to farm loans and low-level security for marketing plans. 

Minimum Catastrophic coverage is available, and provisions are available for limited-resource farmers. 

Available on a wide variety of crops. 


Loss Triggers

Pays when the actual yield falls below the approved guarantee. Losses paid at Federal Crop Insurance Corporation (FCIC) determined price on policy.


MPCI Example

Situation: Loss of production due to drought.*
Actual Production History: 180 bu.
Coverage Level: 65%
Actual Yield: 90 bu.
Market Price: $2.05
Guarantee: APH (180 bu.) x Level (.65) = 117 bu.
MPCI Payment: Guaranteed (117) – Actual Yield (90) = 27 bu. deficit x MP ($2.05  )= $55.35/Acre

*All examples assume the policyholder has 100% share of the insured crop.

Harvest Risk Management is an equal opportunity insurance provider. 

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