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Private Products | Production Plan
Crop-Hail Endorsements
Production Plan
The Production Plan Hail Endorsement is designed to cover that portion of the crop not covered by the underlying yield-based plan of insurance. The endorsement provides protection against loss caused by hail and/or fire on a unit basis. The green snap endorsement is available in some areas.
Crops*
Corn, soybeans, and wheat as specified in the state specific guidelines.
*Additional crops may be available
Percentage APH Options
100%, 105%, 110%, 115%*, 120%*
*Where offered
Price Election Options
50% to 100%, in 5% increments, of the yield-based plan of Insurance price election.
Unit Options
Unit options are based on the unit structure by practice of the underlying yield-based plan of insurance policy, with two exceptions:
- By center pivot
- Underlying optional unit for CAT coverage, enterprise or whole farm units
To qualify for the exceptions above, you must harvest units separately and records must be maintained by individual units.
Determining Coverage (Limit of Insurance)
Assume MP Policy Coverage of:
- Crop: Corn
- Acres: 100 acres
- Share: 100%
- MPCI Price: $4.00 per bushel
- Percent Price Election: 85%
- MPCI Approved Yield Per Acre: 150 bushels
- Percent APH: 110%
- Production Plan Yield: 165 bushels*
- MPCI Coverage Level: 75%
* Production Plan Yield = MPCI Approved Yield x Percent APH
Production Plan Yield |
- |
MPCI Approved Yield |
x |
MPCI Coverage Level |
MPCI Production Guarantee |
= |
||||
165 |
- |
(150 |
x |
75%) |
112.5 |
= |
52.5 |
|||
x |
MPCI Price |
x |
Percent of MPCI Price Election |
x |
Acres |
x |
Shares |
= |
P Plan Limit of Insurance |
|
52.5 |
x |
$4.00 |
x |
85% |
x |
100 |
x |
1.00 |
= |
$17,850 |
Calculating a Loss
- We will not cover any loss under this endorsement until the weighted average percentage of loss for the entire unit equals or exceeds the minimum loss requirement of 5%.
- There will never be a payable loss for any unit if the production to count from the unit exceeds the result of multiplying the approved yield per acre (or a reduced approved yield per acre if coverage under your yield-based plan of insurance policy is reduced for late planting) by the percentage of the approved yield elected, multiplied by the number of insured acres for the unit.
- Once the Crop-Hail weighted average percent of loss for the entire unit equals
or exceeds 5%, the amount payable for the unit will be determined as follows:
- Determine the Crop-Hail weighted loss for the unit;
- Determine the production percent of loss for the unit;
- Determine the lesser of Item 1 and Item 2; and
- Multiply the result of Item 3 by the Total Limit of Insurance not to exceed the Production Plan Limit of Insurance.
Example 1
Crop-Hail Percent of Loss = 40% Unit Weighted Average Percentage of
How the Weighted Percent of Loss for a Unit is Calculated:
100 acres in the unit, Count 1 = 34%, Count 2 = 55%, Count 3 = 28%, and
Count 4 = 43%
The weighted average is the sum of the determined percent of loss of each count in relation to the entire unit.
| (34% x 25%) | + | (55% x 25%) | + | (28% x 25%) | + | (43% x 25%) | = | 40% |
| 8.5% | + | 13.75% | + | 7% | + | 10.75% | = | 40% |
Harvested/Appraised Production = 9,240 bushels
| Production Plan Yield | x | Acres | = | P Plan Total Bushels | - | Harvested Bushels | = | Bushels Below Production Plan Yield | ||||
| 165 | x | 100 | = | 16,500 | - | 9,240 | = | 7,260 | ||||
| Bushels Below Production Plan Yield | / | P Plan Total Bushels | = | Loss Factor | x | = | Production Loss % | |||||
| 7,260 | / | 16,500 | = | 0.44 | x | 100 | = | 44% | ||||
- Since the Crop-Hail Percent of Loss of 40% is less than the Production Loss of 44%, the amount payable would be based on the Crop-Hail Percent of Loss (the lesser of these two figures).
| Crop-Hail Loss % | x | Total Limit of Insurance** | = | Calculated Indemnity | Production Plan Limit of Insurance | Payable Indemnity |
| 40% | x | $56,100 | = | $22,400 | $17,850 | $17,850 |
Example 2
Crop-Hail Percent of Loss = 20% Unit Weighted Average Percentage of Loss
How the Weighted Percent of Loss for a Unit is Calculated:
100 acres in the unit, Count 1 = 23%, Count 2 = 38%, Count 3 = 19%, and
Count 4 = 0%
The weighted average is the sum of the determined percent of loss of each count in relation to the entire unit.
| (23% x 25%) | + | (38% x 25%) | + | (19% x 25%) | + | (0% x 25%) | = | 20% |
| 5.75% | + | 9.5% | + | 4.75% | + | 0% | = | 20% |
Harvested/Appraised Production = 15,180 bushels
| Production Plan Yield | x | Acres | = | P Plan Total Bushels | - | Harvested Bushels | = | Bushels Below Production Plan Yield |
| 165 | x | 100 | = | 16,500 | - | 15,180 | = | 1,320 |
| Bushels Below Production Plan Yield | / | P Plan Total Bushels | = | Loss Factor | x | = | Production Loss % | |
| 1,320 | / | 16,500 | = | 0.08 | x | 100 | = | 8% |
- Since the Crop-Hail Percent of Loss of 8% is less than the Production Loss of 20%, the amount payable would be based on the Crop-Hail Percent of Loss (the lesser of these two figures).
| Production Loss % | x | Total Limit of Insurance** | = | Calculated Indemnity | Production Plan Limit of Insurance | Payable Indemnity |
| 8% | x | $56,100 | = | $4,488 | $17,850 | $4,488 |
** Total Limit of Insurance = MPCI approved yield x percent APH election x acres x MPCI price x percent price election x share
Availability: Illinois, Indiana, Iowa, Kansas (select counties), Minnesota, Missouri, Montana, Nebraska, Ohio, South Dakota, and Wisconsin
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