The Group Risk Plan (GRP) is an area-based insurance product that pays an indemnity when the county-average yield is less than the producer's selected trigger yield. GRP differs from traditional crop insurance approaches, with less paperwork and generally less cost than Multi-Peril Crop Insurance Products.

The Benefits

• Provides a simplified plan to manage risk because the producer only needs to provide number of acres.
• Designed for producer whose production parallels county-average yields.
• Insurable acreage is acreage planted on or before the Acreage Reporting Date.
• Has little or no adverse selection or moral hazard.
• Works well for large farming operations with widely dispersed land throughout the county.
• Requires no field loss adjustment or claims filing.
• No Production records required.

How it Works

• The Producer selects a Coverage Level percent and Dollar Amount of Protection per acre.
• Coverage is on a crop/county basis.
• Coverage Level selected becomes trigger for loss payment.
• Indemnity paid when NASS county 30-year average yield is less than trigger yield.

Coverage Options

• Coverage levels range from 70% to 90%, in 5% increments.
• CAT coverage available on forage only at the 65%/60% level.
• The producer selects the dollar amount of protection per acre, choosing from 60% to 100% of a maximum amount listed in the Actuarial Table.

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