Revenue Protection

What is it?

Revenue Protection (RP) provides protection against a loss of revenue caused by price increase or decrease, low yields or a combination of both. This coverage guarantees an amount based on the individual producer’s APH and the greater of the projected price or harvest price. Both the projected price and harvest price are established according to the crop’s applicable commodity board of trade/exchange as defined in the Commodity Exchange Price Provisions (CEPP.) While the revenue protection guarantee may increase, the premium will not. The projected price is used to calculate the premium and replant payment or prevented planting payment. An indemnity is due when the calculated revenue (production to count x harvest price) is less than the revenue protection guarantee for the crop acreage.


How does it work?

  • Establishes a minimum guarantee of revenue per acre
  • May select coverage with or without Harvest Price Exclusion
  • To determine the Revenue Guarantee, RP will use the greater of the Projected Price or Harvest Price. RPHPE will use only the Projected Price
  • For both plans, the indemnity payment is determined using the Harvest Price if revenue to count is less than final Revenue Guarantee, an indemnity is paid

What does it cost?

Per-acre premiums will depend on the county of the insured crop, unit structure, the crop’s APH yield, and price elections. Higher coverage levels and higher elected prices result in higher premiums.

Why should I get Revenue Protection?

  • Protects against revenue loss caused by low yields and/or low prices, as well as higher fall prices
  • Flexible and efficient management tool to crop producers
  • Subsidized by the Federal Crop Insurance Corporation (FCIC)
  • The Harvest Price increase is limited to 200% of the Projected Price
  • There is no downward limit
  • Coverage on basic, optional, enterprise, and whole-farm units where available
  • Discounts for producers that insure multiple crops on whole-farm units
  • Premium amount is determined using the Projected Price
  • The premium will not increase even if the Harvest Price is higher than the Projected Price

Additional Coverages

  • Late Planting Coverage: May provide additional time to plant crops when conditions prevent timely planting.
  • Prevented Planting: May allow for payments when insurable causes of loss prevent you from planting your crops.
  • Replant Provisions: May provide an additional payment for the extra expenses involved when it is practical to replant and the acreage qualifies.

Revenue Protection With Harvest Price Exclusion

Revenue Protection with Harvested Price Exclusion (RP-HPE) is similar to RP, however RP-HPE coverage provides protection against loss of revenue caused by price decrease, low yields or a combination of both. Unlike RP, the revenue protection guarantee for RP HPE is based on the projected price only and it does not increase based on the harvest price. If the harvested production plus any appraised production multiplied by Harvest Price is less than the amount of insurance protection, the insured is paid an indemnity based on the difference.

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