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Questions about your Revenue Protection Policy?

Aug 07, 2012

How does my Revenue Protection policy work in the event of a production loss?

Example #1:  Harvest price is higher than Projected Price

Actual Production History             175 bushel

Projected (spring) Price                $5.68

Coverage Level                                 80%

Harvest Price                                     $7.00

(Price will be set during the month of October)

Actual Harvested Production      100 bushels

In our example the harvest price is higher than the projected price so our Revenue Protection policy guarantee is recalculated using the higher harvest price,

Revenue Guarantee:

        175 x $7.00 x 80%                     $980

Actual Revenue: 100 x $7.00        $700

Indemnity Due:                                $280/acre

Example #2:  Harvest price is lower than projected price

Actual Production History             175 bushel

Projected (spring) Price                $5.68

Coverage Level                                 80%

Harvest Price                                     $5.00

 (Price will be set during the month of October)

Actual Harvested Production      100 bushels

Revenue Guarantee:

        175 x $5.68 x 80%                     $795

Actual Revenue: 100 x $5.00        $500

Indemnity Due:                                $295/acre

Crop Insurance & Marketing

I pre-sold more bushels than I produced. How does my revenue protection policy work in this situation?

Let’s use the example above – 100 bushel actual yield and 140 bushel guaranteed yield (175 x 80%=140). Your indemnity will reflect the 40 bushel shortfall times the higher harvest price. In this case, 40 bu. x $7.00 = $280.

Please contact the merchandiser you do business with as each company is different in what they will require in the event you are unable to deliver the grain.

AgriPoint

Office Locator

Key Crop Insurance Dates

August 15, 2018
Premium Billing Date
Corn, Soybeans, Spring Wheat, &
Winter Wheat & Spring Wheat on Same Policy – NE, SD

August 20, 2018
Harvest Price Announced
Winter Wheat

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