Coverages | IP | Income Protection

IP for Corn, Cotton, Grain, Sorghum, & Soybeans

About IP

IP offers comprehensive protection through a dollar guarantee. It also provides prevented planting and replant coverage. (Cotton has no replant coverage.)

IP Coverage

IP covers weather-related causes of loss, low prices, and certain other unavoidable perils.

Dollar Guarantee

The IP dollar guarantee is the historical yield multiplied by the level of coverage 50% to 85%, in 5% increments, insured acreage, and projected price. Coverage levels of 80% and 85% are not available in all areas.

Value of Production

The value of production is the harvested production, plus any appraisals, multiplied by the harvest price. The price at which the crop is sold does not affect the indemnity payment.

Units

Unit divisions are limited to an enterprise basis. An Enterprise Unit is all insurable acreage of the insured crop in the county, regardless of interest or persons sharing.

Loss Payment

To calculate a loss payment, subtract the value of production from the dollar guarantee and multiply by the ownership share.

Benefits of IP

• IP loss payments track closely with the economic results of the crop.
• An IP policy may be viewed more favorably as loan collateral.
• Price fluctuation coverage included in an IP policy may help to maintain a steady income throughout a bad economy.

How It Works for Corn

		"Base Price" is Higher than the "Harvest Price"
Dollar Guarantee...........	100 Bu./A. × 75% 100A. ...........	@ $2.75/Bu. =	$20,625
Value of Production......	25 Bu./A. x 100A .......................	@ $2.00/Bu. =	$ 5,000
Loss Payment...............	Assume 100% ownership share	.......................	$15,625

		"Harvest Price" is Higher than the "Base Price"
Dollar Guarantee...........	100 Bu./A. × 75% 100A. ...........	.................... =	$20,625
Value of Production......	25 Bu./A. x 100A .......................	@ $3.15/Bu. =	$ 7,875
Loss Payment...............	Assume 100% ownership share	.......................	$12,750

Availability and Prices

Crop	State	County	Base Price	Harvest Price
Soybeans	AR	Arkansas, Ashley, Chicot, Clay, Conway, Craighead, Crawford, Crittenden, Cross, Desha, Drew, Faulkner, Franklin, Greene, Hempstead, Independence, Jackson, Jefferson, Johnson, Lafayette, Lawrence, Lee, Lincoln, Little River, Logan, Lonoke, Miller, Mississippi, Monroe, Perry, Phillips, Poinsett, Pope, Prairie, Pulaski, Randolph, Sebastian, Sevier, St. Francis, White, Woodruff, and Yell	Jan.15-Feb. 14 avg. for Nov. contract (CBOT)	Oct. avg. for Nov. contract (CBOT)
	IA	Adair, Audubon, Cass, Dallas, Guthrie, and Shelby	Feb. avg. for Nov. contract (CBOT)	Oct. avg. for Nov. contract (CBOT)
	IL	All counties where MPCI is available
	IN	All counties where MPCI is available
Corn	IA	Adair, Audubon, Cass, Dallas, Guthrie, and Shelby	Feb. avg. for Dec. contract (CBOT)	Nov. avg. for Dec. contract (CBOT)
	IL	All counties where MPCI is available
	IN	All counties where MPCI is available
Cotton	AL	Autauga, Lawrence, Limestone, and Madison	Jan. 15-Feb. 14 avg. for Dec. contract (NYCE)	Nov. avg for Dec. contract (NYCE)
	GA	Brooks, Colquit, Dooly, and Worth
Grain Sorghum	TX	Andrews, Archer, Armstrong, Bailey, Baylor, Borden, Briscoe, Brown, Callahan, Carson, Castro, Childress, Clay, Cochran, Coleman, Collingsworth, Comanche, Cottle, Crosby, Dallam, Dawson, Deaf Smith, Dickens, Donley, Eastland, Erath, Fisher, Floyd, Foard, Gaines, Garza, Glasscock, Gray, Hale, Hall, Hansford, Hardeman, Hartley, Haskell, Hemphill, Hockley, Hood, Howard, Hutchinson, Jack, Jones, Kaufman, Kent, King, Knox, Lipscomb, Lubbock, Lynn, Martin, Midland, Mitchell, Montague, Moore, Motley, Nolan, Ochiltree, Oldham, Palo Pinto, Parker, Parmer, Potter, Randall, Roberts, Runnels, Scurry, Shackelford, Sherman, Stephens, Stonewall, Swisher, Taylor, Terry, Throckmorton, Wheeler, Wichita, Wilbarger, Yoakum, and Young	90% of the Feb. avg. for Dec. corn contract (CBOT)	90% of the Nov. avg. for Dec. corn contract (CBOT)
	TX	Anderson, Austin, Bastrop, Bell, Blanco, Bosque, Bowie, Brazoria, Brazos, Burleson, Burnet, Caldwell, Chambers, Coke, Collin, Colorado, Comal, Concho, Cooke, Coryell, Dallas, Delta, Denton, DeWitt, Ellis, El Paso, Falls, Fannin, Fayette, Fort Bend, Franklin, Galveston, Gillespie, Gonzales, Grayson, Guadalupe, Hamilton, Harris, Hays, Hill, Houston, Hunt, Irion, Jeff Davis, Jefferson, Johnson, Kimble, Lamar, Lamb, Lampasas, Lavaca, Lee, Leon, Liberty, Limestone, McCulloch, McLennan, Mason, Matagorda, Milam, Mills, Morris, Navarro, Orange, Pecos, Reagan, Red River, Reeves, Robertson, Rockwall, San Saba, Schleicher, Sterling, Tarrant, Titus, Tom Green, Travis, Upton, Waller, Washington, Wharton, Williamson, and Wise	90% of the Dec. 15 - Jan. 14 avg. for Sept. corn contract CBOT)	90% of the Aug. 15-Sept. 14 avg. for Sept. corn contract (CBOT)
	TX	Aransas, Atascosa, Bandera, Bee, Bexar, Brooks, Calhoun, Cameron, Dimmit, Duval, Frio, Goliad, Hidalgo, Jackson, Jim Hogg, Jim Wells, Karnes, Kerr, Kleberg, La Salle, Live Oak, McMullen, Maverick, Medina, Nueces, Refugio, San Patricio, Starr, Uvalde,Victoria, Webb, Willacy, Wilson, Zapata, and Zavala	90% of the Dec. 15 - Jan. 14 avg. for Sept. corn contract (CBOT)	90% of the Aug. 15-Sept. 14 avg. for Sept. corn contract (CBOT)
Barley	ID	All counties, except: Shoeshone and Yellowstone National	85% of the Feb. avg. for Sept. corn contract (CBOT)	85% of the July 15- Aug. 14 avg. for Sept. corn contract (CBOT)
	OR	All counties, except: Clatsop, Coos, Curry, Hood River, Lincoln, and Tillamook
	WA	All counties, except: Jefferson
	MN	All counties, except: Anoka, Blue Earth, Brown, Cook, Faribault, Freeborn, Jackson, Lake, Martin, Mower, Nicollet, Nobles, Ramsey, Waseca, and Watonwan	85% of the Feb. avg. for Sept. corn contract (CBOT)	85% of the Aug. avg. for Sept. corn contract (CBOT)
	MT	All counties, except: Lincoln and Yellowstone National
	ND	All counties where MPCI is available
	SD	All counties, except: Aurora, Bennett, Bon Homme, Brule, Buffalo, Butte, Charles Mix, Clay, Custer, Davison, Dewey, Douglas, Fall River, Gregory, Haakon, Hand, Hanson, Harding, Hughes, Hutchinson, Hyde, Jackson, Jerauld, Jones, Lawrence, Lyman, Meade, Mellette, Pennington, Perkins, Potter, Sanborn, Shannon, Stanley, Sully, Todd, Tripp, and Ziebach

CBOT - Chicago Board of Trade NYCE - New York Cotton Exchange

Note: This summary is for general illustration only. See policy for program details.

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