MULTI-PERIL COVERAGE
Farmers
face a volatile risk environment because of the rapidly changing business
structure of agriculture, coupled with new technology and changing
weather patterns.
Changes
in national farm policy means that farmers must assume more of their
own farming risk. The Multi-Peril Crop Insurance program is one of
the farmer's best remaining safety nets. With federal incentives that
significantly reduce premiums, crop insurance is one of the best buys
producers can make. RCIS is committed to helping you manage risk through
affordable crop insurance.
YIELD BASED COVERAGE
Multi-Peril
Crop Insurance (MPCI)
- provides protection against losses from a number of uncontrollable
causes. MPCI is the most popular insurance coverage due to its flexibility
in level and price.
Catastrophic
(CAT) - Provides the minimum coverage amount on a MPCI
policy. For a $100 fee, producers can buy a minimum insurance coverage
based on 50% of the producing operation's average yield at 55% of
the FCIC established prices.
Group
Risk Plan (GRP) -
Recommended for farmers whose yield history closely tracks the county
or parish history because protection is based on the yield experience
of the county rather than their individual farms. [to the top]
REVENUE
INSURANCE PLANS
Crop
Revenue Coverage (CRC)
- Provides farmers with a revenue guarantee based on their approved
yield and current market price. Protects against losses resulting
from a decrease in market price, a loss of production or combination
of the these. While CRC provides several advantages over traditional
crop insurance policies, the real benefit comes when it is incorporated
as an integral part of the producer's marketing plan.
CRC can be an
effective risk management tool by providing farmers with an established
revenue guarantee per acre. Farmers may more proactively market through
the growing season when prices are usually higher, knowing that CRC
provides the revenue guarantee to cover bushels committed in forward
pricing their crop or when using other market options.
Revenue
Assurance (RA) - This program was expanded in Crop Year
2001 and is now available on more crops in more states and counties.
This policy provides protection against revenue losses resulting from
any combination of low market prices or low production yields. RA
is available in certain states. Ask your agent about availability
in your area.
Income
Protection (IP) - The Income Protection (IP) program is
designed to insure against reductions in gross income from below average
yields and low harvest prices. Since the goal of the program is to
protect revenue at the enterprise unit level, the insured unit is
based on a county index of all acres of the crop in the county. This
program is offered for select crops in a limited number of states.