Coverages | Income Protection Coverage

Income Protection Coverage

This program provides comprehensive protection for crops by establishing a dollar guarantee based on the applicable futures market exchange early futures prices as indicated in each crop provision. Coverage levels are available from 50-75% (80 and 85% coverage levels are available for some crops in limited areas) of the APH yield. The perils covered are weather related, certain other unavoidable causes of loss and low price. The value of production is determined by multiplying the harvested and/or appraised production by the near harvest futures price as established in each crop provision. This program indemnifies the grower when the value of production is less than the dollar guarantee. A unit consists of all acreage of the crop in the county. CAT is available and the coverage provided is determined by multiplying the APH yield by the early futures price times 27.5%.

Indexed Income Protection is also available in limited areas. This program determines the growers indexed yield by comparing the insured’s APH to the county average yield. Indexed yields may result in improved yield guarantees for producers in areas that have experienced low yields in recent years.

Note: This summary is for general illustration only. See policy for program details.