RMA Crop Production and Revenue Insurance Products

RMA Crop Production and Revenue Insurance Products

Lesson Overview• In this lesson, we will learn about:

– Wyoming acres of annually-planted crops, and acres insured– Multiple Peril Crop Insurance– Catastrophic Risk Protection (CAT)– Crop Revenue Insurance (CRC)– Group Risk Plan (GRP)– Group Risk Income Protection (GRIP)– Forage Insurance– Seed and Specialty Crop Insurance

• Alfalfa Seed Protection Insurance• Nursery Crop Insurance

– Adjusted Gross Revenue-Lite (AGR-Lite)


Crops Covered Under MPCI:

• Barley

• Corn (for grain)

• Corn (for silage)

• Dry beans

• Proso millet

• Oats

• Potatoes

• Sugarbeets

• Sunflowers

• Wheat

• Malting barley


Malting Barley- a slightly different approach

• First, purchase a feed barley policy• Make decisions regarding:

1. units2. coverage level3. price election

• Decide if you want to purchase a malting barley price and quality endorsement1. Option A is for non-contracted and

contracted production combinations2. Option B is for all contracted production


Malting Barley- a slightly different approach (Cont…)

• The endorsement applies to all bushels contracted for delivery, regardless of feed barley units

• An indemnity is paid for any malt barley production that does not meet malting standards specified in the price and quality endorsement

• Option B indemnities are valued as the difference between the malting barley contract price and the MPCI feed barley price

MPCI Example Malting Barley: Option B



• Nick actually harvest 50 bushels of barley per acre. The barley harvested meets the malting barley standards. What is the value of his indemnity for the yield loss?1. First, he receives an indemnity for the difference in bushels

2. Next, the value based on the feed barley price election is calculated

3. Then the total indemnity is calculated

4. Nick is only able to deliver 5,000 bushels of malting barley (50) bushels per acre x 100 acres). The malting barley indemnity is based on his coverage level which is 70% of 10,000 bushels


• Malting Barley- Exercise 1 (Cont…)

5. Bushels to be indemnified are valued as the difference between the malting barley contract price and the maximum price election for feed barley


Malting Barley- Exercise 2

• Question 1– If Nick’s barley harvest yields 100 bushels per acre but is not of

malting barley quality, will he receive an indemnity for the feed barley? Yes or no?


Malting Barley- Exercise 2 (Cont…)

• Question 2– What is Nick’s malt barley indemnity? Recall that Nick’s malting

barley is insured for 7,000 bushels- 70% of his 10,000 bushel harvest.


Topic Summary

Let’s summarize what you have learned in this topic:

• How multiple peril crop insurance applies to many of the different crops grown in the state

• Calculations for covering coverage levels, indemnities for yield losses, and gross levels

RMA Crop Production and Revenue Insurance Products

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