Estimated harvest prices for barley & wheat insured under your Revenue Protection (RP) policy:
|Projected Price||Estimated Harvest Price|
Please note the harvest prices are set using the August averages, so we won’t know the official harvest prices until the end of August. Because the harvest price is higher than the projected price (spring price), your bushel guarantees stay the same, but any claims would be paid at the harvest prices, therefore your revenue guarantee increases.
RP Policy Loss Example – Increasing Harvest Price
APH = 60 bu/acre; Coverage level = 75% Projected Price = $6.53
Harvest Price = $9.13
Final Guarantee 60 bu/acre x 75% x $9.10 = $409.50 Actual Yield: 25 bu/acre
Calculated Revenue: 25 bu/acre x $9.10 = $227.50
RP Indemnity: $409.50 guarantee - $227.50 calculated revenue = $182.00/acre loss payment
YP Indemnity: 45 bu/acre guar – 25 bu/acre actual yield x $6.53 Projected Price = $130.60/acre loss payment
The above example compares the difference between Revenue Protection (RP) and Yield Protection (YP) claim payments. Please note YP uses the projected price only. Premium difference between RP and YP is $1 to $2 for enterprise units & $2 to $3 for optional units per acre depending on which counties you farm in and is calculated using the projected price.
Revenue Protection is a valuable marketing tool. Every year there is usually an opportunity to market your crop prior to harvest. The risk involved is that most contracts require delivery. If the crop can’t be delivered due to a production loss and the crop price has risen, the producer will have to buy grain at the higher price to fill or buyout the contract. The harvest feature of RP allows the producer to use a more aggressive marketing plan, because when calculating a claim, the higher harvest price is used.
Production claims should be submitted within 15 days after harvest. For unharvested crops, the deadlines are October 31st for barley and wheat. Contact your crop insurance agent as soon as possible if you suspect a claim!
Emergency Drought Relief – Deferral of Interest Charges
Interest charges are being waived for an additional 60 days. Therefore, instead of interest charges attaching after September 30th, they will now begin to attach after November 30th. I would recommend putting it on your calendar for November 15th and paying your bill then to avoid interest charges.
COVID-19 Pandemic Cover Crop Program (PCCP)
The PCCP provides premium support to eligible producers who insured their spring crop and planted a qualifying cover crop during the 2021 crop year. The premium support is $5 per acre but no more than premium owed. To receive premium support, producers needed to sign up and report qualifying cover crop acres at the Farm Service Agency by June 15, 2021. The cover crop fields reported on the Report of Acreage Form at FSA must match what you reported to your insurance company for federal crop insurance policies. I believe the up to $5 per acre will be credited on your MPCI crop insurance bill.
Good luck to everyone with harvest and fieldwork!