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Crop Insurance Vocabulary

Risk Management Agency(RMA)

A division of the USDA that oversees the crop insurance industry.

CAT policy

Catastrophic Risk Protection-This policy is an individualized yield product that pays in the event the actual yield on the insured’s farm falls below 50% of the insured’s historical yield.

MPCI policy

Multiple Production Insurance Policy (sometimes called an Actual Production History policy) – This policy is an individualized yield product that pays the insured in the event the actual yield on the insured’s farm falls below the trigger yield selected by the insured.

CRC policy: Crop Revenue Coverage & RA-HO policy: Revenue Assurance w/Harvest Option

These are both individualized revenue products that pays the producer in the event the actual revenue on the producer’s farm falls below the trigger revenue selected by the producer. These policies also protect against yield loss.

GRP policy

Group Risk Protection-This is a county based policy that pays the producer in the event the actual county yield falls below the trigger yield selected by the producer.

GRIP-HRO policy

Group Risk Income Protection w/Harvest Revenue Option-This is a county based policy that pays the producer in the event the actual county revenue falls below the trigger revenue selected by the producer.

Basic Units

All of the insurable acres of the insured crop in the county either owned, cash rented or shared with another individual for a percentage of the crop.

Optional Units

Breaks down basic units into smaller units.

Enterprise Units

Combines all the acres, of the insured crop, farmed by the insured in the county into one basic unit.

Actual Production History

A minimum of 4 years of actual production from each unit, up to a maximum of 10 years.

T-Yields

An estimated county yield, of the insured crop, that’s assigned if the insured isn’t able to provide a minimum of 4 years of actual production history.

Prevented Planting

Failure to plant the insured crop, by the final planting date in the insured county. The producer must have been prevented from planting the insured crop due to an insured cause of loss which also prevented other producers in the area from planting.