Yield Protection

Crop insurance is purchased by agricultural producers, including farmers, ranchers, and others to protect themselves against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities.

Yield Protection

Yield Protection (YP) and Actual Production History (APH) are multi-peril crop insurance products that provide protection against losses in yield due to nearly all natural disasters. For most crops, that includes drought, excess moisture, cold and frost, wind, flood, and unavoidable damage from insects and disease. These products guarantee a yield based on an individual producer’s actual production history. If the production to count is less than the yield guarantee, an indemnity is paid

How Does It Work

  • ​ Establishes a guarantee of bushels per acre
  • ​ YP Projected Price is determined by futures contracts, and APH price is established by the Federal Crop Insurance Corporation (FCIC)
  • Pays an indemnity if the production to count falls below the yield guarantee

Coverage Level

Coverage level is the percentage of APH yield selected by the producer. The producer can select a coverage level of the APH yield ranging from 50% up to 85% in 5% increments. A higher yield election increases the yield guarantee.

Insurance Units

  • Basic: All insurable acreage of the insured crop in the county in which you have a 100% crop share or owned by one person and operated by another person on a share basis.

  • Optional: A division of the basic unit structure if each optional unit is located in a separate section and there is a discernible break in the planting pattern and separate production records are proven.

  • Enterprise: Two or more sections with planted acres. See Basic Provisions for additional requirements.

  • ​ Whole Farm: All insurable acreage of the insurable crops in the county. The insurable acreage must contain at least two or more crops.

Premiums

Per-acre premiums will depend on the county of the insured crop, unit structure, the crop’s APH yield, and price elections. Higher coverage levels and higher elected prices result in higher premiums.

Additional Coverages

  • Late Planting Coverage: May provide additional time to plant crops when conditions prevent timely planting.

  • Prevented Planting: May allow for payments when insurable causes of loss prevent you from planting your crops.

  • ​Replant Provisions: May provide an additional payment for the extra expenses involved when it is practical to replant and the acreage qualifies.

What are the benefits?

  • ​Offers a competitive premium
  • Subsidized by the Federal Crop
  • Insurance Corporation (FCIC)
  • Protection against production loss
  • Based on a producer’s own production history
  • Provides coverage levels ranging from 50% to 85% of the APH in 5% increments
  • Provides coverage on basic and optional units
  • Enterprise and whole-farm unit coverage is available in some areas
  • 60-100% coverage of the projected or RMA price
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Greenfield, IA 50849​
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