• Slide5
  • Slide4
  • Slide3
  • Slide2
  • Slide1

RMA Products

Buying a crop insurance policy is one risk management tool available to all agricultural producers. You should consider how a policy will work in conjunction with your other risk management strategies to insure the best possible outcomes each crop year.  Our team can assist you in making the best risk management decisions for your farming operation. 
 
The Risk Management Agency (RMA) provides policies for more than 100 different crops.  Although available for most counties, some policies are being tested as pilots or have not been expanded nationwide.  Insurance plans offered by the RMA include:
 
Actual Production History (APH) - This policy insures producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects and disease.  This plan of insurance guarantees a yield based on the individual producer's actual production history. An indemnity is due when the value of the production to count is less than the liability.  
 
Actual Revenue History (ARH) - This policy protects growers against losses from low yields, low prices, low quality, or any combination of these events.  This pilot program is structured as an endorsement to the Common Crop Insurance Policy Basic Provisions.  Each crop insured under ARH has unique crop provisions.
 
Area Risk Protection Insurance (ARPI) - This plan of insurance provides protection against a loss of revenue or loss of yield in a county.  ARPI provides flexibility in the data source used for establishing yields and requires production reporting requirements for producers enrolled in area-based plans of insurance.  Producers may select from three plan options to personalize their policy.  If the final county yield or final county revenue falls below the trigger yield or trigger revenue, an indemnity is paid.
 
Livestock Policies (LRP and LGM) - These policies are designed to insure against declining market prices of livestock and not any other peril.  Coverage is determined using futures and options prices from the Chicago Mercantile Exchange Group.  Price insurance is available for swine, cattle, lambs and milk.  Producers decide the number of head (cwt of milk) to insure and the length of the coverage period.  Livestock Risk Protection (LRP) provides coverage against market price decline.  If the ending price is less than the producer determined beginning price an indemnity is due.  Livestock Gross Margin (LGM) provides coverage for the difference between the commodity and feeding costs.  If the producer determined expected gross margin is greater than the actual gross margin, an indemnity is due.
 
Rainfall Index (RI) - This plan of insurance provides protection against a single peril - lack of precipitation.  Coverage can be purchased by landlords, tenants and owner/operators for those acres important to their haying or grazing operation.  Producers may select a variety of coverage levels, productivity factors and two-month intervals to personalize their plan.  The Rainfall Index program uses weather data collected by the National Oceanic and Atmospheric Administration to determine rainfall levels.  Losses are based on a rainfall index and when the precipitation in the Grid and Index Interval declines from its long-term historical norm.
 
Revenue Protection (RP) - This program provides protection against revenue loss due to a decline in both crop prices and yields.  Producers may select from a variety of coverage levels to personalize their policy.  If the actual yield falls below the yield guarantee or if the actual revenue falls below the minimum or revised revenue guarantee, an indemnity is paid.  RP provides a minimum revenue guarantee that can increase as much as 200% over the minumum guarantee if the crop insurance harvest price is higher than the projected price.
 
Revenue Protection with Harvest Price Exclusion (RP-HPE) - This program provides protection against revenue loss due to a decline in both crop prices and yields.  Producers may select from a variety of coverage levels to personalize their policy.  A loss is realized if the harvest price plus any appraised production multiplied by the harvest price is less than the amount of insurance protection.  When this option is selected, the minimum crop insurance revenue guarantee will not be recalculated when harvest prices are released.
 
Vegetation Index (VI) - This plan of insurance provides protection against a reduction in the Normalized Difference Vegetation Index (NDVI) due to natural occurrences.  Coverage can be purchased by landlords, tenants and owner/operators for those acres important to their haying and grazing operation.  Producers may select from a variety of coverage levels, productivity factors and three-month index intervals to personalize their plan. This plan uses NDVI data, which is a measure of vegetation greenness and correlates to forage conditions and productive capacity. Losses are based on the difference between the normal NDVI data and the actual grid index during the interval selected.
 
Yield Protection (YP) - This program provides protection against a loss in production below the predetermined guarantee.  Producers may select from a variety of coverage levels to personalize their policy.  The insurance yield is based on a policyholder's actual production history, which is the average yield obtained on the insured unit for four to ten consecutive years.  If the average yield per acre is less than the yield guarantee, an indemnity is paid.