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Multi-Peril Crop Insurance (MPCI)
A Multi-Peril Crop Insurance (MPCI) policy, also known as “Actual Production History” (APH, protects a policyholder against a loss in yield. A payment will be made when the actual yield falls below the yield guarantee, which is based on the insured’s share of the approved actual production history on the unit covered.

To find your yield guarantee, you will need to take your APH and multiply it by the level of coverage you choose. If your actual harvested yield falls below that yield guarantee, you are eligible for an indemnity. This indemnity is paid at a level equaled to your yield loss per acre multiplied by a pre-set spring price that is established by the USDA’s Risk Management Agency.

As with CRC and RA policies, the MPCI policy covers unavoidable production losses such as drought, excessive moisture, hail, wind, frost/freeze, tornado, lightning, flood, insect infestation, plant disease, excessive temperature during pollination, wildlife damage, and certain other causes. (Refer to the policy for clarification.)

MPCI does not cover losses resulting from poor farming practices, low commodity prices, or theft.

Late planting coverage is included as an automotive feature in most MPCI policies.

With most crops, there is a 25-day late planting period. It starts on June 5 for corn, and June 20 for soybeans. (These dates vary by region – See the policy for details.) The production guarantee is reduced 1 percent per day for 25 days for a maximum reduction of 25 percent.

If you are unable to plant until after the late planting period due to an insurable cause of loss, the insured crops will be covered at 60% of the original production guarantee for timely planted acreage.

Prevented Planting (PP) coverage is also included as an automatic feature in most MPCI policies.

If you are prevented from planting a crop due to an insurable cause of loss, PP provides coverage equal to 60% (or other level elected) of the original yield coverage. No other crop may be planted for harvest on these acres, although forage craps for haying and grazing are allowed.

Prevented planting provisions require at least 20 acres (of 20% of the acreage intended to be planted in the unit, whichever is less) to be affected.

In an insured crop is severely damaged for a reason due to an insured peril and will not produce at least 90% of the guaranteed yield, you can receive a payment equal to your costs for replanting. The maximum replant coverage is equal to 20% of your share of the guaranteed yield (up to 8 bushels for corn and 3 bushels for soybeans) multiplied by the price election chosen in the policy.

The replant payment is not available for catastrophic level coverage.

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Group Risk Income Protection (GRIP)
The Group Risk Income Protection (GRIP) policy is a county-based insurance product that pays the policyholder in the event the actual county revenue falls below the county trigger revenue selected by the policyholder.

Policyholders are eligible for a payment when the actual county revenue drops below the county trigger revenue that they choose. The trigger revenue is calculated by multiplying the GRIP price by the expected county yield, then multiplying this by the level of coverage (90, 85, 80, 75, or 70 percent). The GRIP price is the average futures closing prices during the month of February. For corn, the December futures contract prices are used, while soybean uses the November futures contract prices.

The actual county revenue is computed by multiplying the actual county yield by the harvest price. The harvest price for soybeans is the average of the November futures contract price during October while for corn, it is the average of the December futures contract price during October.

The amount of payment the policyholder receives depends on the level of protection selected. A policyholder can choose a level from 60-100% of the maximum available protection. That maximum available protection is set each year by the Risk Management Agency (RMA).

A policyholder can elect to purchase GRIP insurance with the Harvest Option (HO) where the revenue guarantee does increase if the harvest price is higher than the February price.

Special Notes on GRIP:
GRIP does not cover replant, late planting, prevented planting, or loss specific to the policyholder’s unit. GRIP is strictly a county policy, and a loss is determined based upon county yield only.

GRIP has a $1.50 price fluctuation limit for corn and $3.00 price fluctuation limit for soybeans from spring to harvest.

Indemnity payments are based off of the actual county yields, therefore they are paid in the spring of the following year.

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