Revenue Assurance is a multiple peril crop insurance product that is based on Board of Trade prices and
protects against loss of revenue caused by low prices, low yields, or a combination of obth. It has the harvest price option available,
which uses the greater of the fall harvest price (generated at harvest time) or the projected harvest price (generated in the spring) to
determine the per-acre revenue guarantee.
Benefits of Revenue Assurance would be:
* Provides a flexible & efficient management tool to crop producers.
* Provides collateral for loans.
* Harvest Price Option has unlimited upside protection, which is a great tool for forward contracting grain.
* Protects against low revenue.
* Available in unit structures of basic, optional, enterprise & whole farm.
* Provides discounts for producers that insure multiple crops on whole farm units.
How Revenue Assurance works:
* Establishes a minimum guarantee of revenue per acre.
* May select with or without Harvest Price Option.
* If revenue to count is less than final revenue guarantee, an indemnity is paid.
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Crop Revenue Coverage is a mutiple peril crop insurance product that guarantees revenue by combining yield and price
variablility. Indemnities are due when any combination of appraised yiled and harvest price result in revenue that is less than
the revenue guarantee. And, while the guarantee may increase, the premium will not. Crop Revenue Coverage is the most widely
available revenue protection policy.
Benefits of Crop Revenue Coverage:
* Protects from revenue loss caused by low yields and/or low prices.
* Based on producer's own production history.
* Allows more flexibility and agressiveness in marketing crops.
* Provides collateral for loans.
* Uses regional commodity exchanges to establish prices.
* Provides coverage on bsic, optional, or enterprise untis.
* A production loss is always indemnified.
How Crop Revenue works:
* Establishes a minimum gurantee of revenue per acre.
* Final revenue guarantee established using highter of base or harvest price.
* If revenue to count is less than final revenue guarantee, an idemnity is paid.
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Actual Production History is a mutiple peril crop insurance product that provides protection against a loss in
yiled due to nearly all natural disasters. For most crops, that included drought, excess moisture, cold and frost, wind, flood,
and unavoidable damage from insects and disease. This product guarantees a yiled based on an individual producer's actual production history.
If the production to count is less than the yield guarantee, the insutan is paid a loss.
Benefits of Actual Production History:
Protection against production loss.
Based on a producer's own production history.
Provides coverage levels of 50% to 85% of the Actual Production History in increments of five.
Provides coverage on basic, optional, or enterprise units.
Offers a competitive premium.
Subsidized by FCIC.
How Actual Production History works:
* Establishes a guarantee of bushels per acre.
*Actual Production History price is established by FCIC and is independent of revenue products.
* Pays an indemnity if the production is less than the guarantee.
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