Area Risk Protection Insurance

Group Risk Plan (GRP) is Now Area Yield Protection (AYP):

AYP coverage is based on the experience of the county rather than individual farms.  Maintaining production history is now mandatoryAYP covers the insured in the event the final county yield falls below the insured trigger yield in the calendar year following the crop year insured.  Since the plan is based on county yields and not individual yields, the insured may have a low yield on their farm and not receive payment under AYP.

  • Based on county experience
  • Yield-Based
  • Must maintain production history

 

GRIP-HRO is now Area Revenue Protection (ARP).

Like the other area plans, ARP is based on the county experience rather than individual farms.  Coverage is provided against loss of revenue due to a county level production loss, a price decline, or combination of both.  Upside harvest price protection is included which increases the policy protection at the end of the insurance period if the harvest price is greater than the projected price and if there is a production loss. ARP will pay a loss when the final county revenue is less than the trigger revenue, which is calculated using the higher of the projected or harvest price.  Maintaining the insured production history is mandatory.

  • Based on county experience
  • Upside harvest price protection
  • Must maintain production history 

Group Risk Income Protection (GRIP) is now Area Revenue Protection w/Harvest Price Exclusion (ARP-HPE).

Like AYP, ARP-HPE is based on the experience of the county rather than individual farms.  Maintaining  production history is now mandatory.  An ARP-HPE policy provides protection against loss of revenue due to a county level production loss, price decline, or a combination of both.  This plan only uses the projected price and does not provide upside harvest price protection.  ARP-HPE covers the insured when the final county revenue is less than the trigger revenue.  Since this plan is based on county revenue and not individual revenue, the insured may have a loss in revenue on their farm and not receive payment under ARP-HPE.

  • Based on county experience
  • Protects against production loss, price decline, or combination of both
  • Must maintain production history