Revenue Protection with Harvest Price Exclusion allows you to receive an indemnity payment when your gross revenue falls below your revenue guarantee. As an integral part of your marketing program, Revenue Protection helps insure your profitability, not just your expenses. You can market your crop during the growing season, when prices are usually higher, knowing that you have the revenue guarantee to cover bushels committed in forward pricing or other market options.

 

• Guarantees revenue per acre, with comprehensive protection again weather-related losses and certain other unavoidable perils including low crop prices.

 

• Protects against low prices, low yields, poor quality, late planting, replanting costs1 or when planting is prevented1.

 

• Available for basic, optional, enterprise or whole farm* units

 

• Revenue guarantee established at sales closing does not change if prices change.

 

• Base Price – 100% of the average closing price of the December Futures Contract of the Chicago

 

• Board of Trade (CBOT) during the month of February for corn. For soybeans, it is 100% of the average closing price for November Futures Contract on the CBOT during the month of February.

 

Harvest Price – 100% of the average closing price during October for the December CBOT Corn Contract. For Soybeans, 100% of the average closing price during October for the November CBOT.

 

* If allowed by Special Provisions of Insurance

 

Benefits

 

• Bottom-line revenue guarantees for more security at marketing.

 

• Provides income guarantee for bank loans.

 

• Prices are set using regional commodity exchanges to more closely reflect price differences.

 

Loss Triggers

 

Pays when actual revenue is less than the revenue guarantees; high harvest prices may result in lower indemnity payments.

 

Revenue Protection with Harvest Price Exclusion Example

 

Situation:

Harvest price is above projected price2

 

Coverage Level: 75%

 

Harvest Price: $4.10

 

Revenue Protection Guarantee:

APH (180 bu.) x Level (0.75) x Projected Price ($3.50) = $472.50/Acre

 

Yield: 90 bu./Acre

 

Harvest Revenue:

 

Yield (90 bu.) x Harvest Price ($4.10) = $369.00/Acre

 

Indemnity Payment:

Revenue Guarantee ($472.50) - Harvest Revenue ($369.00) = $103.50/Acre

 

The following additional coverages are also available:

 

Late planting coverage

Replant provisions

Prevented planting

Quality adjustment

 

1Not available on all crop policies

 

2All examples assume the policyholder has 100% share of the insured crop. Different rounding rules may apply to different calculations and/or products.