Protect the business you've worked so hard to grow. Our crop insurance products and other agricultural insurance services are tailored to protect your revenue and your crops. Rabo AgriFinance can help build a comprehensive risk management plan based on the specific needs of your agribusiness.
Area Risk Protection Insurance (ARPI) is the replacement for both Group Risk Income Protection Plan (GRIP) and Group Risk Plan (GRP). It is a broad term that encompasses three specific plans: Area Yield Protection, Area Revenue Protection, and Area Revenue Protection with the Harvest Price Exclusion.
Area Yield Protection
What It Is: Area Yield Protection (AYP) protects your agribusiness against widespread loss of yield within your county.
How It’s Calculated: Using multiple data sources for setting and determining county yields, AYP pays an indemnity if the final county average yield falls below the trigger level selected by the producer. AYP is subsidized by the Federal Crop Insurance Corporation (FCIC), and offers coverage levels ranging from 65% – 90% with maximum policy protection of 80% – 120% of the established price multiplied by the expected county yield.
What It Is: Area Revenue Protection (ARP) is based on the same principle as Area Yield Protection (AYP), but ARP protects against loss of revenue caused by low prices, by low yields or a combination of both. It protects your agribusiness against loss of revenue based on average per-acre revenue within your county.
How It’s Calculated: Using multiple data sources for setting and determining county yields, ARP pays an indemnity if the county average per-acre revenue falls below the trigger level selected by the producer.
What It Is & How It’s Calculated: ARP also includes the Harvest Price Exclusion Option (ARP-HPE), which allows the producer to increase expected county revenue if the harvest price is higher than the expected price.
What It Is: Crop-Hail Insurance Coverage can complement your Multiple Peril Crop Insurance/Multi-Peril Crop Insurance (MPCI) for additional protection against:
How It’s Calculated: Since there are multiple Crop Hail Insurance Coverage options and insurance companies to choose from, Rabobank can help you choose the right coverage and insurance provider to meet the overall risk management needs of your agribusiness.
What It Is: Dairy Revenue Protection (DRP) provides protection against an unexpected decline in revenue (yield and/or price) on the milk produced from dairy cows.
How It’s Calculated: Producers may purchase insurance coverage for up to five quarters (out of 8 insurance periods) and have multiple endorsements for the same quarterly insurance period. The policy covers the difference between your final revenue guarantee and actual milk revenue during each quarter of the year.
Producers have two pricing options:
DRP provides insurance only for the difference between the final revenue guarantee and actual milk revenue multiplied by actual share and protection factor, caused by natural occurrences in market prices and yields in the pooled production region.
What It Is: Livestock Gross Margin provides protection for your cattle, swine, or milk produced from dairy cows and could be a valuable part of a risk management solution. You can sign up for Livestock Gross Margin on a weekly basis and insure all of your swine, milk production or cattle you expect to market. LGM insures your gross margin over the crop insurance period you choose. Premiums are due at the end of the crop insurance period.
How It’s Calculated: LGM Swine protects the gross margin between the market value of insured hogs minus the cost of corn and soybean meal. LGM Dairy protects the gross margin between the market value of milk minus the feed costs on the milk produced from dairy cows. LGM Cattle protects the gross margin between the market value of cattle minus the feeder cattle and feed costs on cattle.
What It Is: Livestock Risk Protection provides your business with protection against declining market prices for fed cattle, feeder cattle and swine. Livestock Risk Protection is available all year long for producers or ranchers with an ownership share in eligible livestock.
Benefits include:
How It’s Calculated: Livestock Risk Protection fed cattle, feeder cattle and swine premium is subsidized by the USDA 355% to 55%, based on the coverage level.
What It Is: Pasture, Rangeland & Forage Protection (PRF) covers farmers and ranchers against losses of forage used for haying or grazing to feed livestock.
Crop conditions and potential losses are based on rainfall indices within specified grid areas rather than on individual farms. Pasture, Rangeland & Forage Protection is intended to help protect your operation from a forage loss due to a lack of precipitation.
You can have both a Livestock Risk Protection (LRP) and LGM insurance policy, but you can’t insure the same class of livestock with the same end month or have the same insured livestock insured under multiple policies.
How It’s Calculated: The Rainfall Index uses National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) data, which utilizes a grid system to determine precipitation amounts within an area. Each grid is 0.25 degrees in latitude by 0.25 degrees in longitude, which translates to approximately 17 by 17 miles at the equator.
Insurance payments for losses are calculated based on the deviation from normal precipitation or vegetation with the grid.
What It Is: Revenue Protection (RP) is a multiple-peril crop insurance product based on the Commodity Exchange Price Provisions (CEPP) prices. Revenue Protection protects agricultural producers against production loss, price fluctuations, or a combination of both.
If revenue-to-count is less than the final revenue guarantee, an indemnity is paid. Revenue Protection is a flexible and efficient risk management tool for agricultural producers, offering coverage on basic, optional, enterprise, and whole-farm units (where available).
How It’s Calculated: Revenue Protection establishes a minimum guarantee of revenue per acre for an insured farm operation. Producers select coverage with or without the Harvest Price Exclusion. The revenue guarantee is established using the greater of the Projected Price or Harvest Price (limited to 200% of the Projected Price). Revenue Protection will pay when your harvest revenue is less than the final revenue guarantee.
What It Is: A Yield Protection (YP) crop insurance policy guarantees a crop yield based on an individual farm operation‘s Actual Production History (APH). If the production to count is less than the yield guarantee, an indemnity is paid. YP provides protection against losses in yield due to most natural disasters and weather events, including drought, excess moisture or flood, cold and frost, wind, insects and animals and disease.
How It’s Calculated: Yield Protection is subsidized by the Federal Crop Insurance Corporation (FCIC) and is based on each farm operation‘s individual production history. YP covers both basic and optional units—enterprise and whole farm unit coverage is available in some areas—and coverage levels range from 50% to 85% of the APH in 5% increments.
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