New Common Crop Insurance Policy
Crop insurance is a common risk management tool available to agricultural producers. The USDA’s Risk Management Agency (RMA) provides crop insurance for over 100 crops and RMA crop insurance has been available to Utah agricultural producers for many years. But now the insurance process may be a little easier. In an effort to simplify the program, several of the separate crop insurance policies are now combined into one Common Crop Insurance Policy (CCIP).
In the past, different policies were available for yield protection and revenue protection. Actual Production History (APH) policies were designed to protect producers against yield losses, but did not take into account price fluctuations. Revenue policies, including Crop Revenue Coverage (CRC), Revenue Assurance (RA), and Income Protection (IP) policies, insured producers against losses to revenue due to price changes and/or yield losses.
According to RMA data, over 100,000 acres in Utah have been insured through RMA crop insurance programs each of the past 10 years and over 155,000 acres were insured last year.[i] Of the 955 policies sold in Utah for the 2010 crop year, 864 of those policies were Actual Production History (APH) policies and 82 policies were Crop Revenue Coverage (CRC) policies.
Beginning in the 2011 crop year APH, CRC, RA and IP policies have been combined into the Common Crop Insurance Policy. Three protection options are available through CCIP: Yield Protection (YP), Revenue Protection (RP), and Revenue Protection with Harvest Price Exclusion (RP-HPE). Previous insurance policies will be converted to the Common Crop Insurance Policy and one of these options. APH policies will be converted to the Yield Protection option and Crop Revenue Coverage and Revenue Assurance policies (CRC and RA) will be converted to the Revenue Protection option. Income Protection and Revenue Assurance policies without the Fall Harvest Price option will be converted to the Revenue Protection with Harvest Price Exclusions option.
The new Common Crop Insurance policy is available for the following crops: Barley, canola/rapeseed, corn, cotton, grain sorghum, malting barley, rice, soybean, sunflower, and wheat. For more information on CCIP or availability in Utah or to sign up for crop insurance, producers should contact a crop insurance agent (www.rma.usda.gov/tools/agent.html).
[i] All data used in this article are available through the RMA website: www.rma.usda.gov