Coverages
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IP for Corn, Cotton, Grain, Sorghum, & Soybeans
What Is It? What Are Its Benefits?
This program provides comprehensive protection for crops by establishing a dollar guarantee based on the board or exchange early futures price (projected price). Coverage levels are available from 50-85% in increments of 5% 1 of the Actual Production History (APH) and up to 100% of the price. Catastrophic (CAT) coverage is also available at 27.5% of the APH and 100% of the price. The perils covered are weather related, price fluctuation, and certain other unavoidable causes of loss. Income Protection Coverage provides prevented planting and replanting coverage2.
Dollar Guarantee
The dollar guarantee for the insurance unit is the historical yield (APH) times the selected level of coverage and projected price.
Value of Production
Multiply the harvested production, plus any appraisals, by the near harvest futures price (harvest price) by the ownership share to determine the value of production. The price at which the crop is sold does not affect the amount of a loss of profit.
Loss Payment
To calculate whether a loss is payable, subtract the value of production from the dollar guarantee.
Units
Unit divisions are limited to an enterprise basis. Enterprise units consist of all insurable acreage of the insured crop in the county, regardless of interest or persons sharing.
How It Works (corn illustration)
| 1 | ||
| "Base Price" is higher than the "Harvest Price"— | ||
 |
|
Base Price |
| Dollar Guarantee | 100 Bu./A. × 75% 100A. |
@
$2.75/Bu. = $20,625
|
|
|
|
| Value of Production | 25 Bu./A. × 100A. |
@
$2.00/Bu. = $5,000
|
|
|
|
| Loss Payment (indemnity) | Assume
100% ownership share |
= $15,625 |
|
|
|
| 2 | ||
| "Harvest Price" is higher than the "Projected Price"— | ||
|
|
Harvest Price |
| Dollar Guarantee | 100 Bu./A. × 75% 100A. | -------------
= $20,625 |
|
|
|
| Value of Production | 25 Bu./A. × 100A. | @
$3.15/Bu. = $ 7,875 |
|
|
|
| Loss Payment (indemnity) | Assume
100% ownership share |
= $12,750 |
Availability and Prices
| CROP | STATE | COUNTY | PROJECTED 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 Wor th | |||
| Grain Sorghum |
TX | Andrews, Archer, Armstrong, Bailey, Baylor, Borden, Briscoe, Brown, Callahan, Carson, Castro, Chilehess, 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, Hardman, 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, Witchita, 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, Huston, 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, Hope River, and Lincoln | |||
| WA | All counties except: Jefferson | |||
| MN | All counties except: Anoka, Blue Earth,
Brown, Cook, Faribault, Freeborn, Jackson,
Lake, Martin, 85% of the Feb. avg. 85%
of the Aug. 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, Washabaugh, and Ziebach |
1 80 and 85% levels available in limited areas • CBOT - Chicago Board of Trade • NYCE - New York Cotton Exchange
2 Cotton has no replant coverage.
02/04, 12/05
Note: This summary is for general illustration only. See policy for program details.
