Revenue Assurance (RA) is a Multi-Peril Crop Insurance (MPCI) based policy that gives producers a revenue guarantee to protect against reductions inincome when prices or yields decline. Producers who use the RA policy to support their marketing decisions may choose to add the Harvest Price Option to their policy. With this added feature, the insurance guarantee is recalculated at harvest. If prices are highter than at planting, the higher harvest price is used to figure the guarantee for the policy. The Harvest Price Option addresses the problem producers face in their marketing plans when harvest prices go up. With the Harvest Price Option selected, RA performs essentially the same as CRC.

The Benefits

• When there is a yield loss, bushels are paid at market price.
• Protection from revenue loss caused by low yields and /or price.
• Establishes a guaranteed level of revenue.
• Provides flexability in policy and unit option coverage.
• Uses producers Actual Production History (APH).
• Strengthens ability to secure financing.
• Reinsured and subsidized by FCIC.

How it Works

• Expected Revenue (uses APH) and Revenue Guarantee are established.
• Producer selects Coverage level.
• Harvest Price is multiplied by Actual Production to establish Actual Revenue.
• An indemnity is paid if the Actual Revenue is below the Revenue Guarantee.

Coverage Options

• Producer selects unit determination: basic, optional, enterprise, or whole-farm. Enterprise and whole-farm units msut be selected by Sales Closing Date.
• Coverage levels range from 65% to 75% for basic and optional units, with a maximum of 85%.
• For basic, optional, or enterprise units, producers may choose different levels by crop. For example, corn at 65% or soybeans at 75%.
• For additional premium, producers can choose a Revenue Guarantee based on the higher of the Projected Price or Harvest Price.
• Replant, prevented and late planting coverage is included; however, not all crops have a late plant provision under RA.

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