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
simple average (based on certain criteria) of your current units, whichever is greater.
YP-Yield Protection Example
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
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.