Insurance

Area Yield Protection

Area Yield Protection (AYP) protects your business against widespread loss of yield within your county.

Using multiple data sources for setting and determining county yields, AYP pays an indemnity if the final county average yield falls below the trigger level selected by the producer. AYP is subsidized by the Federal Crop Insurance Corporation (FCIC), and offers coverage levels ranging from 65% – 90% with maximum policy protection of 80% – 120% of the established price multiplied by the expected county yield.

Area Revenue Protection (ARP) is based on the same principle as Area Yield Protection (AYP), but ARP protects against loss of revenue caused by low prices, low yields or a combination of both. It protects your business against loss of revenue based on average per-acre revenue within your county. Using multiple data sources for setting and determining county yields, ARP pays an indemnity if the county average per-acre revenue falls below the trigger level selected by the producer. ARP also includes the Harvest Price Option, which allows the producer to increase expected county revenue if the harvest price is higher than the expected price.

Crop Hail Coverage

Crop Hail Coverage can complement your Multiple Peril Crop Insurance (MPCI) for additional protection against:

• Hail, fire and lightning damage
• Fire department service charges
• Crops damaged while in transit
• Crops damaged while in storage

Since there are multiple Crop Hail options and insurance companies to choose from, Rabobank can help you choose the right coverage to meet your overall risk management needs.

Dairy Revenue Protection

Dairy Revenue Protection (DRP) provides protection against an unexpected decline in revenue (yield and/or price) on the milk produced from dairy cows. The policy covers the difference between your final revenue guarantee and actual milk revenue during each quarter of the year.

Livestock Gross Margin

Livestock Gross Margin provides protection for your cattle, swine, or milk produced from dairy cows.

• LGM Swine protects the gross margin between the market value of insured hogs minus the cost of corn and soybean meal.
• LGM Dairy protects the gross margin between the market value of milk minus the feed costs on the milk produced from dairy cows.
• LGM Cattle protects the gross margin between the market value of cattle minus the feeder cattle and feed costs on cattle.

Benefits of Livestock Gross Margin

• You can sign up for LGM on a weekly basis and insure all of your swine, milk production or cattle you expect to market.
• LGM insures your gross margin over the insurance period you choose.
• Premiums are due at the end of the insurance period.

Livestock Risk Protection

Livestock Risk Protection provides your business with protection against declining market prices for fed cattle, feeder cattle and swine. LRP is available all year long for producers with an ownership share in eligible livestock.

• No margin calls or brokerage fees
• No upfront costs, premiums due at the end
• Limited basis risk coverage
  • The aggregate cash price used better reflects actual price received
• Any number of head can be covered (up to limits)
• Numerous endorsement period options
  • Producer selects the period that fits their risk management plan
• Wider range of target weights than CME

Pasture, Range, Forage

Pasture, Rangeland & Forage Protection (PRF) covers farmers and ranchers against losses of forage used for haying or grazing to feed livestock.

Crop conditions and potential losses are based on rainfall indices within specified grid areas rather than on individual farms. Pasture, Rangeland & Forage Protection is intended to help protect your operation from a forage loss due to a lack of precipitation.

• The Rainfall Index uses National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) data, which utilizes a grid system to determine precipitation amounts within an area. Each grid is 0.25 degrees in latitude by 0.25 degrees in longitude, which translates to approximately 17 by 17 miles at the equator.
• Insurance payments for losses are calculated based on the deviation from normal precipitation or vegetation with the grid.

Revenue Protection

Revenue Protection (RP) is a multiple-peril crop insurance product based on the Commodity Exchange Price Provisions (CEPP) prices, and protects against production loss, price decline or increase, or a combination of both.

Revenue Protection establishes a minimum guarantee of revenue per acre for an insured producer. Producers select coverage with or without the Harvest Price Exclusion. The revenue guarantee is established using the greater of the Projected Price or Harvest Price (limited to 200% of the Projected Price). Revenue Protection will pay when your harvest revenue is less than the final revenue guarantee.

Yield Protection

Yield Protection (YP) guarantees a yield based on an individual producer’s Actual Production History (APH). If the production to count is less than the yield guarantee, an indemnity is paid. YP provides protection against losses in yield due to most natural disasters, including drought, excess moisture or flood, cold and frost, wind, insects and animals and disease.

Yield Protection is subsidized by the Federal Crop Insurance Corporation (FCIC) and is based on each producer’s individual production history. YP covers both basic and optional units – enterprise and whole farm unit coverage is available in some areas – and coverage levels range from 50% to 85% of the APH in 5% increments.