Crop Insurance Product
Multiple Peril Crop Insurance (MPCI)
Multiple Peril Crop Insurance (MPCI) provides peace of mind by helping you increase profits in a good year and avoid financial interruptions in a bad year.
Multiple Peril Crop Insurance (MPCI ) was developed by the Federal Crop Insurance Corporation (FCIC) and provides coverage against unavoidable crop loss for most crops. Multiple Peril Crop Insurance from CIS - Crop Insurance Specialists, Inc. offers farmers protection against a reduction in yields due to unavoidable crop losses cased by acts of nature or disease.
To better understand Multiple Peril Crop Insurance it is necessary to understand some definitions.
Actual Production History (APH) - The amount of production per acre computed and used to determine guarantees within the MPCI program. An APH may contain up to 10 consecutive APH crop years of actual and/or assigned yields.
Expected Market Price - The price per unit of production that is anticipated during the period the insured crop is normally marketed. The price is set by FCIC and remains constant throughout the insurance year.
Levels of Coverage - 50% to 75% in 5% increments. 80% and 85% levels are available for some crops and counties.
Does cost vary from agent to agent?
No. FCIC sets the rates. However, different approved yields or levels of coverage selected will affect your cost per acre.
Examples based on a per acre basis:
APH based upon farmer's submitted and approved records = 164 APH
FCIC Expected Market Price on corn = $2.60 per bushel
Level of coverage selected = 75%
Amount of Protection Calculation:
164 APH x 75% = 123 Bushels per Acre Guarantee
123 Bushels x $2.60 = $320 per acre liability
Loss Payment Calculation:
123 Bushels per Acre Guarantee - 100 Bushels harvested per acre
= 23 Bushels per acre Loss
23 x $2.60 = $60 per acre loss payment
Loss payments apply when, due to an insured peril, the number of harvested bushels is less than your bushels per acre guarantee.
Why purchase Multiple Peril Crop Insurance?
- Provides protection against production loss
- Acreage may be insured on a Basic Unit or Optional Unit basis to establish separate APH yields
- Provides coverage levels of up to 85% for some crops and counties
- Pays Expected Market Price if a yield loss is suffered
- Acts as an excellent credit enhancement for agricultural loans
- Provides peace of mind
Careful planning with your CIS agent is the key to your well-being in the wettest, the driest, or the best of times.
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