With the rapid decline in market price, producers may want to start thinking about taking advantage of higher crop guarantees for the 2024 crop year ahead of the traditional February trading period. Looking at additional coverages right now might pay off come springtime.
MARGIN PROTECTION:
Margin Protection is an area plan that covers gross profit margin instead of gross revenue like most other insurance policies. The policy takes decline in area yield, decline in market price, and/or increase in input costs into consideration when calculating for claims. Coverage levels are available up to 95%, making it the highest subsidized crop insurance policy available. It can be purchased by itself or with your MPCI policy (a great option if you are worried about individual losses, replant, prevent plant, and failed crop coverages). Producers that purchase both a Margin Protection Policy and an MPCI policy receive a premium discount off their MP policy.
The Margin Protection Projected Prices for the commodity and inputs are set 8/15/23-9/14/23 for the 2024 crop year. This gives a producer the opportunity to gain higher crop insurance prices on their MP policy in a rapidly declining commodity market AND gain additional coverage against increasing input prices over the winter.
How do you know if Margin Protection is right for you?
A few key questions to ask when looking at a Margin Protection policy:
- Does my current MPCI policy provide enough protection to cover what I have in the crop?
- Does my county/area have yields similar to my own? Is there a higher risk that I will have a loss when the county/area doesn’t?
- Has my county/area performed well in the past with this product?
- How soon will I need crop insurance claim dollars in the event of a loss?
The sales closing date for this policy is 9/30/23 for the 2024 crop year. Contact an agent today for quotes and information specific to your farming operation.
RpowerD
RPowerD allows the policyholder to enhance the base coverage established under the Revenue Protection plan of insurance through additional crop price discovery methods. You are guaranteed the higher of the Projected Price, Harvest Price, or RpowerD Price. RpowerD policies can be purchased throughout the year starting 8/1/23 – 4/1/24 and offer policyholders the opportunity to increase their guarantee by:
- Additional price coverage – purchasing a fixed dollar amount to add to your MPCI guaranteed price
- Market Price – Purchasing the previous day’s market price to establish your crop insurance guarantee.
- Trading intervals – Elect one or multiple trading intervals throughout the year in full or half-month increments. Daily market prices are averaged out over the interval period for a final market price that is used to establish your crop insurance guarantee. Not sure which months to choose? RpowerD offers 19 10-day interval package that starts trading 3/21/24 and continues until 9/30/24, giving producers multiple opportunities to gain market value on their crop insurance policy during the summer months when the crop prices are traditionally the highest.
You can bundle any or all these options together and receive a premium discount for doing so.
How do you know if RpowerD is right for you?
A few key questions to ask when looking at a RpowerD policy:
- Does my current MPCI policy provide enough protection to cover what I have in the crop?
- Do I think the market price will be higher during the chosen interval than during the February or October Trade?
- Will I benefit from having more trading options on my crop insurance policy?
- When do I sell my crops?
Livestock Coverages:
With the current high prices in the livestock markets, taking advantage of a crop insurance policy can help protect your revenue. LRP, LGM, and DRP livestock policies can cover loss of market value in Dairy, Beef, Swine, & Lambs. You can sign up for any of these products throughout the year. Talk to an agent to see which product best suits your operation.