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Multi-Peril Crop Insurance

MPCI - Multi-Peril Crop Insurance


With MPCI there are several different types of plans and options to meet your farming operations needs.  You just have to chose the one that is best for your operations needs. 

MPCI Plans:  Yield Protection, Revenue Protection and Revenue Protection with Harvest Price Exclusion 
Options:  Unit types (basic, optional, enterprise, or whole farm), Endorsements (available on some crops)

Multiple Peril Crop Insurance provides protection against yield and/or revenue and/or quality loss due to named perils as indicated in each crop provision. 

Yield Protection

Yield Protection provides a broad range of protection against weather related causes of loss and certain other unavoidable perils. Coverage levels are available from 50 to 75% in 5% increments (80 and 85% coverage levels available in some areas). Minimum coverage (CAT) is available at 50% of the APH and 55% of the price election. Coverage is based off of the Actual Production History (APH). The price is set by RMA and can be selected up to 100%. Coverage provides the guarantee (APH yield x the coverage level and on cotton x the skip row factor). MPCI provides late planting, prevented planting, and replanting protection on some crops. 


Yield Guarantee

 
The guarantee is the Actual Production History (APH), multiplied by the selected coverage level, multiplied by the skip row factor (on cotton) and multiplied by the insured acreage. If you do not have a historical yield, then a different yield will be used. 


Production to Count

 
The production to count could be, but not limited to: harvested production, appraised production, or a combination of both. Production to count is calculated using the actual production plus any yield appraisals less any adjustments for poor quality and/or excess moisture. 


Loss Payment

A loss payment is figured by subtracting the production to count from the yield guarantee and multiplying the result by the price election and share. If there is a loss, contact your agent to report loss. Once an adjuster figures your loss, you and your landlords (where applicable) will be paid. 


Units
 
  • The basic insurance unit is all the acreage of the crop in the county in which the policyholder has 100% ownership or shares with the same person. Most basic insurance units can be further divided into optional units. 
  • Optional units may be divided by sections or section equivalents (in areas without sections or section equivalents), by irrigated or dry land practices, and by acreage grown under an organic farming practice. To qualify, a producer must have individual records for each unit and must have a discernible break between units. 
  • Cotton growers may also choose a county crop enterprise unit at a reduced premium in all MPCI counties in AL, AZ, AR, CA, FL, GA, KS, LA, MS, MO, NM, NC, OK, SC, TN, TX, and VA. This in not available in all counties. An enterprise unit will be all acres of the crop insured under one unit. 


How MPCI Works (cotton illustration)
 
APH yield 353 × skip row factor 1.29 x level 65% x 100 acres = 29,599 pounds (guarantee) 
Production to Count (harvested) 150 lbs./acre × 100 acres = 15,000 pounds 
Production Loss = guarantee 29,599 - 15,000 harvested = 14,599 pounds 
Loss Payment (indemnity) 14,599 lbs. x $.52 price election x .750 share = $5,694 




Reporting Changes or Crop Damage
Producers should notify their crop insurance agent or company immediately to get specific instructions if any of the following occurs: 
  • If the crop is damaged or the producer plans to utilize production in such a way that harvested production cannot be determined, 
  • If the producer wants to make a change in the amount of protection (limited availability), or 
  • If there is a change in the farm operation (entity, crops, county, etc.). 

     

Benefits of having MPCI
  • Protects Risks 
  • Financial management 
  • Stability for farming operations 
  • Cash flow safety net 
  • Loan collateral 
  • U.S.D.A. shares in premium costs

     
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Click Here to eMail or call for us details 1-877-570-5517.


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Multi-Peril Crop Insurance
Yield Protection (YP)
Revenue Protection (RP)
Group Risk Protection GRP)
Group Risk Income Protection (GRIP)
Crop Hail