Revenue Protection (RP)
The RP policy includes yield loss protection found in YP but also adds protection for loss of crop value due to a drop in price on the applicable board of trade. This policy uses the same projected price as the YP policy and adds a harvest price. The harvest price is the average closing price of the same futures contract used to determine the projected price for a specified period of time during the harvest season. The policy revenue guarantee is based on the elected percentage of the Approved APH times the greater of the projected or harvest price. If the harvest price is greater than the projected price, the policy guarantee will increase accordingly without an increase in premium. An indemnity is due if the calculated revenue (harvested/appraised production X harvest price) is less than the policy guarantee (Approved APH X % of coverage X greater of projected or harvest price). This plan is available for barley (including malting), canola/rapeseed, corn, cotton, grain sorghum, rice, soybeans, sunflower seed, and wheat.
Revenue Protection (RP) with Harvest Price Exclusion
The RP-HPE policy provides protection against a loss in revenue due to a low yield, low price or a combination of both. It is identical to the RP policy with the exception that the policy guarantee is based solely upon the projected price. The policy guarantee will not increase if the harvest price is higher than the projected price which could result in a production loss with no revenue loss. In effect, a higher harvest price offsets the production loss. This plan is available for barley, canola/rapeseed, corn, cotton, grain sorghum, rice, soybeans, sunflower seed, and wheat.