Revenue Protection (RP) provides protection against a loss of revenue caused by price increase or decrease, low yields, or a combination of both.
Revenue Protection (RP) is one of the plans offered under the Common Crop Insurance Policy Basic Provisions, along with Yield Protection and Revenue Protection with Harvest Price Exclusion. Common Crop Insurance Policy plans focus on simplicity in terms of choices, resulting in a clear understanding of the crop insurance product. Revenue Protection provides protection against a loss of revenue caused by price increase or decrease, low yields, or a combination of both (for corn silage and rapeseed, protection is only provided for production losses). This coverage guarantees an amount based on the individual producer’s APH and the greater of either the projected price or harvest price. Under this policy, an indemnity is due when the calculated revenue (production to count x harvest price) is less than the revenue protection guarantee for the crop acreage.
Affected crops include wheat, barley (including malting barley), corn, grain sorghum, soybeans, cotton, rice, sunflowers, canola/rapeseed, cabbage, forage seeding, raisins, fresh market sweet corn, fresh market tomatoes, peppers, sugar beets, and onions.
Both the projected price and harvest price are established according to the crop’s applicable commodity board of trade/exchange as defined in the Commodity Exchange Price Provisions (CEPP). While the revenue protection guarantee may increase, the premium will not. The projected price is used to calculate the premium and replant payment or prevented planting payment. The price discovery period, release dates, board of trades utilized, and additional pricing information will be contained in the CEPP and is available at armt.com or rma.usda.gov.