Revenue Protection With Harvest Price Exclusion

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Revenue Protection with Harvest Price Exclusion (RP-HPE)

RP-HPE is available for: Barley, Canola, Corn, Cotton, Dry Beans, Dry Peas, Grain Sorghum, Peanuts, Popcorn, Rice, Soybeans, Sunflowers, and Wheat.

Revenue Protection with Harvest Price Exclusion policies insure producers against a loss in revenue, regardless of whether the loss is due to loss in production, loss in yield or both. The RP-HPE policy guarantee is based upon the Projected Price and unlike the RP policy, the guarantee will not increase if the Harvest Price is higher than the Projected Price.

In a year in which the Harvest Price is higher than the Projected Price, loss in yields will be offset by the gain in price and will result in lower or no indemnity. A grower could have a yield loss and receive no indemnity.

In a year in which the Harvest Price is lower than the Projected Price, the RP-HPE indemnity will perform the same as the RP policy.

RP-HPE uses a Projected Price and Harvest Price to determine price movement during the growing season. At no time is the price the grower received for the crop considered. The Projected and Harvest Prices are determined by averaging a futures contract price from a board of trade over a given period of time known as the “Discovery Period”. There is a limit on upward movement of the Harvest Price - it cannot exceed 2 times the Projected Price - but there is no limit on downward movement. The parameters outlining the futures contract price, board of trade and discovery period can be found in the Commodity Exchange Price Provisions (CEPP).

Both the Revenue Guarantee and the Revenue to Count are based upon 100% of the Approved APH and 100% of the production harvested. The producer’s share of the crop is not taken into account until the total indemnity has been calculated.

Coverage Level

The grower elects to insure a percentage of their historical average known as the Approved APH. Coverage levels available range from: 50% to 75% (80% & 85% levels are available for some crops) in 5% increments. Some crops allow for separate coverage levels by type or by irrigation practice.

Price Election

The RP-HPE policy only provides for a 100% Price Election.

Prevented Planting and Replant

The policy provides for coverage for Prevented Planting and Replant Coverage, however, the Crop or Special Provisions may modify or eliminate the coverage.

Unit Structure

Indemnities are calculated on each unit as elected by the grower. Unit structures available under the RP-HPE policy are:

  • Optional Units (OU)
  • Basic Units (BU), and
  • Enterprise Units (EU - not available for all crops)

Time Zones

13

Countries

70

Brands

12

Agents

9500