The 2011 crop insurance year finds many farm-level crop insurance programs merging into what is called the "Common Crop Insurance Policy" or COMBO. COMBO is meant to simplify crop insurance choices. It has three plans that offer coverage previously contained in the Actual Production History (APH), Crop Revenue Coverage (CRC) and Revenue Assurance (RA) products. The table below indicates the changes.
Yield Protection pays indemnities when yield falls below a yield guarantee. Revenue Protection (with and without Harvest Price Exclusion) pays indemnities when revenue falls below a revenue guarantee. The guarantee can increase if the harvest price is above the projected price when Revenue Protection is purchased. The guarantee does not increase if the harvest price is above the projected price when Revenue Protection with Harvest Price Exclusion is purchased.
Under the Common Crop Insurance policy all projected prices are determined by commodity exchanges. This year's price protections are can be found in Table 2.
Other changes in crop insurance that might be of interest include the following.
|Table 1. Common Crop Insurance Policy (COMBO)|
|2010 Policies||Common Crop|
|Actual Production History (APH)||Yield Protection|
|Crop Revenue Coverage (CRC)||Revenue Protection|
|Revenue Assurance with Fall Harvest Price Option (RA-HP)||Revenue Protection|
|Revenue Assurance without Fall Harvest Price Option (RA-BP)||Revenue Protection with Harvest Price Exclusion|
|Table 2. 2011 Price Protections|
REVISED: October 2, 2015