Production Plan Endorsement

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Production Plan Endorsement

The Production Plan Endorsement modifies the hail policy to only provide coverage for the portion of the crop not covered under an MPCI policy on a Production Plan unit basis. The insured must also purchase at least a 50% Yield Protection, Revenue Protection or Revenue Protection with Harvest Price Exclusion policy at the buyup level (no CAT endorsement).

The unit structure is the same as the underlying MPCI policy, however, Enterprise Units, Whole Farm Units and Basic Units may be treated as Optional Units if separate production has been maintained.

This policy covers all of the same perils as the underlying hail policy with the exception of transit coverage and is an annual policy that must be renewed every year.

Crop Value

To establish the amount of insurance, the grower will determine the value of the crop and deduct the amount of MPCI coverage for the crop.

The value of the crop is based upon the MPCI Approved APH and the MPCI price, however, the MPCI Approved APH can be increased by electing a higher CHPP coverage level. 

150 MPCI Approved APH
X 115% CHPP Coverage Level Elected
173 CHPP Production Guarantee
- 120 MPCI Guarantee (80% Coverage Level)
53 Total Bushels Covered
X $4 Price Election (Projected Price X MPCI % of Price Election)
X 100% Share
$212 Limit of Insurance

Indemnity Example

1 acre with 150 MPCI APH
80% MPCI Coverage Level
115% CHPP Coverage Level
103 bu. harvested

The CHPP production loss will be the lesser of:

173 CHPP Production Guarantee (150 X 115% X 1)
X 25% Adjuster Determined Percent of Loss
43.25 Prouduction Loss Due to Hail


173 CHPP Production Guarantee (150 X 115% X 1)
- 120 MPCI Guarantee (150 X 80% X 1)
53 Total bushels covered


173 CHPP Production Guarantee (150 X 115% X 1)
- 103 MPCI Production to Count
70 Actual Production Loss
43.25 Production Loss Payable
X $ 4 CHPP Price Election (MPCI Price Election)
X 100% Share
$173 Indemnity Payable