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Bushel Guarantee Policy

 Yield Protection (YP)


This is a policy that insures against a bushel yield loss due to natural causes such as excessive moisture, frost, drought, insects, etc.  You, the producer, elects to insure a percentage of your own actual production history for the crop to be insured.  We can insure your yield at levels from 50% to 85% of you APH.  If, for a insured cause of lost, you actually harvest less than your guarantee, an indemnity is due you based on the difference.


     •  A Multi Peril Crop Insurance Policy provides a bushel guarantee at a set price 
        established by Federal Crop Insurance Corp. in February based on December Corn and November Soybeans. 

  

         2012- Corn projected price yet to be determined=$5.60+ Estimated, Soybean estimated at =$12.45+
         
     •  You will need to provide the crop insurance company with minimum of 4 years 
        production history if possible.

     •  You will need to separate your yields and acres by farm for Optional Units or at least two units for Enterprise Units.

     •  Added farms within a crop year will have yields based on the county T-Yield or 
        the simple average (based on certain criteria) of your current units, whichever is greater.


YP-Yield Protection Example
Mr. Farmer has elected to insure his corn at 70% level of YP on the 100 acres of corn he plants.  He has a 143 bu/ac actual average corn yield.  143 x 70% = 100 bu/ac guarantee.  Mr. Farmer actually produces 80 bu/ac for the growing season due to an insurable cause.

     100 Bushel/Acre guarantee - 80 Bushel/Acre harvested = 20 Bushel/Acre loss
     20 Bu/Ac x 100 Acres planted = 2000 Bushel total loss
     2000 Bushel x $5.60 estimated price = $11,200 loss payment

 

If Mr. Farmer produces 120 Bu/Ac on his 100 acres, he would not have a loss.  He must have harvested below his guarantee in order to have a claim.  This is a bushel guarantee policy only.