Revenue Protection

The Revenue Protection option offers a producer protection against a loss of yield related to unavoidable perils, as well as protection against commodity price fluctuations. Coverage is based on the producer's Actual Production History (APH) and a base price established from an applicable futures market. Coverage Levels, depending on area, are available from 50% up to 85% of the producers APH. The producer's Base Revenue Guarantee is their APH multiplied by the selected Coverage Level, applicable Base Price, and the planted acres. A producer is indemnified when their Calculated Revenue is less than their Final Revenue Guarantee, as long as the shortage is due to an insurable cause of loss. The amount of indemnity is determined by subtracting the Calculated Revenue from the Final Revenue Guarantee, the producer is paid the difference.