Revenue Protection plan is an effective way to protect a producer’s farming operation against both low yields and unpredictable market swings. It guards against a loss of revenue caused by low prices, low yields or a combination of the two. This means a policy may pay an indemnity when there is no yield loss because it protects against low market prices at harvest time. Since protection of the grower’s revenue is the primary objective of RP, it contains provisions addressing both the yield and price risk.
- The RP guarantee is based upon the higher of the Projected (Base) Price (trades during the month of February for corn and soybeans) or the Harvest Price (trades during the month of October for corn and soybeans)
- Available for corn, soybeans, wheat, and other coarse and small grain crops
- Utilizes your farm’s actual production history
- 50% – 85% levels of coverage
- Use CBOT future prices
- Provides coverage against loss of income due to a loss of yield and/or a change in the CBOT future price.
- Includes Prevent Plant and Replant coverage