Multi-Peril Crop Insurance

MPCI policies are a risk management tool available to agricultural producers. Producers should consider how a policy will work in conjunction with their other risk management strategies to insure the best possible outcome each crop year. Farm Credit Services of Mandan has 14 Insurance Representatives with over 200 combined years of experience willing to assist you in developing a management plan that works for your operation.

Whole Farm Revenue Protection (WFRP)

WFRP is a risk management safety net for all commodities on the farm under one insurance policy. It provides protection against the loss of revenue that the producer expects to earn, or will obtain, from commodities being produced on the farm during the insurance year. Deadline to sign up for WFRP is March 15th. If you are interested, please call your Insurance Specialist for more details.

Crop Insurance Record Book

Keep track of your planting application and practices with Farm Credit’s Crop Production Record Book. Free at your local FCSM branch office.

Actual Production History (APH)

  • Provides protection for production losses due to natural causes
  • Prices established annually by RMA
  • Provides coverage for crops without publicly traded prices
  • Producer’s history is used to establish guaranteed bushels per acre

Yield Protections (YP)

  • Similar to APH crops
  • Provides protection for production losses due to natural causes
  • Projected prices determined by certain futures markets
  • Producer’s history is used to establish guaranteed bushels per acre

Revenue Protection (RP)

  • Provides protection for production losses due to natural causes
  • Also provides revenue protection
  • Projected prices and harvest prices determined by certain futures markets
  • Producer’s history is used to establish guaranteed revenue per acre

Catastrophic Risk Protection (CAT)

  • 50% Coverage Level
  • 55% Price Election
  • Provides minimal coverage for bushel guarantee
  • Basic Units only
  • Excludes replant payments and fire/hail exclusions
  • Administrative fee of $300 per crop per county

Buy-up

  • 50-85% Coverage Levels (availability varies by crop and county)
  • 100% Price Election
  • Options vary by plan

Unit structures are used to determine the approved APH, production guarantee and the amount of potential indemnities.

Basic Unit (BU)

  • Determined by ownership of the land
  • Each crop and each county have separate basic unit structure
  • Unit structure will default to basic units if no other is chosen

Optional Unit (OU)

  • Sub-divided basic units
  • Production records are kept by unit (section)
  • Separate by irrigated and non-irrigated practice

Enterprise Unit (EU)

  • Basic/optional units are combined
  • All shares and acres of the crop in the county
  • Must be comprised of two or more sections with lesser of 20 acres or 20%
  • Increased subsidy

Enterprise by Practice Unit (EP)

  • Enterprise Unit databases can be separated by non-irrigated and irrigated
  • Each practice must meet the enterprise unit guidelines

Yield types are used to determine how the Actual Production History databases are established.

Transitional Yield (T-yield)

  • Set yields determined by RMA and found in the Actuarial Documents
  • Used
  • Established by crop (type and practice) and county

Variable T-Yield

  • Certain percentage of the T-yield
  • Used if unable to provide records for crops planted and harvested in prior years

Simple Average T-Yield (SA T-Yield)

  • Determined by using a producer’s actual yields (by type and practice)
  • Used for Added Land (less than 2,000 acres)

Assigned Yield

  • Applied when acceptable production records are not filed timely
  • Determined by the Insurance Company

Personal T-Yield (PTY/PY)

  • Only available in North Dakota
  • More closely reflects a producer’s actual production history
  • Option elected by the producer by the Production Reporting Date

Master Yield (MY)

  • Option elected by the producer by the Sales Closing Date

 

Options and endorsements are used to add or improve coverage for a crop. They are elected by the producer on the application and additional premium fees may apply.

Yield Adjustment (YA)

  • 60% substitution yield
  • Replace low actual yield with the 60% of T-yield (or PTY if elected)
  • Applied to all production databases in crop/county elected

Yield Exclusion (YE)

  • Exclusion of Actual T-Yield for years determined by RMA
  • Years are excluded based on county wide low production

Trend Adjustment (TA)

  • Reflects long term increase in the county’s historical yield
  • APH database must have one actual yield in the last four years
  • Amounts vary from year to year
  • Cups and Yields are not applicable with TA is elected
  • Does not adjust the PTY
  • YA are eligible for TA

Malt Barley Endorsement (MBE)

  • Producers elect yield protection or revenue protections
  • Provides additional quality protection for the malting barley

Canola Crop Rotation (CR)

  • Two year crop rotation of canola
  • Must plant a black leg resistant variety (MR-R)
  • Seed tags must accompany the acreage report

Prevent Plant Buy-ups

  • (PF) additional 5% coverage on top of existing prevent plant coverage
  • (PT) additional 10% coverage on top of existing prevent plant coverage

Yield Floors

  • Prevent approved APH from falling below a percentage of the T-yield
  • Not applicable for CAT policies
  • Automatically applied when needed

Yield Cups

  • Limited to a 10% reduction of approved APH from one year to the next
  • Automatically applied when needed

CLAIMS

  • Must request bin measurement service if commingling new grain with old grain
  • Must get prior approval from an adjuster before putting a field to another use (replanting, haying, grazing, chopping, etc.)
  • To avoid the requirement of daily feeding records, request an appraisal prior to feeding

RECORDKEEPING

  • Production and acreage evidence must be kept for 3 years plus the current year
  • Hard copy records are used to prove the final disposition of the crop
    • Settlement sheets, assembly sheets, processing records, etc.
    • Signed appraisals or bin measurements
    • Signed claim documents
    • RMA approved precision farming records
  • Soft copy records may be used to separate production by unit (section) – required for Optional Unit Structure
    • Combine monitor records
    • Load records
    • Weigh slips
    • Pre-approved bin markings
    • Precision farming records not approved by RMA
  • Producers with Enterprise Units are also encouraged to keep soft copy records to separate production by unit (section), so they have the opportunity to elect Optional Units in the future
For more information, please refer to our Annual Crop Insurance Newsletter.
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