Revenue Protection (RP)
Revenue Protection (RP) offers comprehensive coverage for weather-related causes of loss, certain other unavoidable perils and price fluctuations through a dollar guarantee (based on approved yield times the level of coverage, the insured acreage, the percent of share and the projected price). RP also provides prevented planting and replant protection. Premiums, replant payments and prevent planting payments are calculated on a projected price. Revenue Protection with Harvest Price Exclusion is also available.
Coverage levels are available from 50percent to 75percent, in 5percent increments (80percent and 85percent coverage levels are available in limited areas). There is increased protection if the harvest price is higher than the projected price. If the harvest price is higher than the projected price, Revenue Protection with Harvest Price Exclusion does not provide increased protection.
Value of Production
The price at which the crop is sold is not used to calculate the loss payment, but rather by multiplying the harvested production, plus any appraisals, by the percent of share and harvest price determine the value of production. To calculate a payable loss, subtract the value of production from the dollar guarantee, multiplied by the percent of share.