Income Protection is a revenue insurance policy that protects against reductions in gross income when yields or prices fall. An indemnity is paid when the income is less than the guaranteed income as a result of a reduction in price or yield from an insured cause. Income Protection is usually less expensive than other Revenue products, like CRC and RA, because the Revenue Guarantee is set in the spring and is fixed. This means is does not increase if the harvest price is higher than the spring estimated price.

The Benefits

• An alternative to the Multi-Peril Crop Insurance (MPCI) policy, Income Protection insures minimum revenue for your crops.
• Regional commodity exchanges are used to establish prices.
• Premium subsidy provided through the USDA has increased.
• Yield setting, loss adjustment and underwriting procedures are based on the Actual Production History (APH) plan of MPCI.
• Protects against reductions in gross income when yield and/or prices fall.
• Protects revenue on an enterprise unit basis.
• No acreage location limitations, like Revenue Assurance.
• Less expensive than other Revenue products.

How it Works

• Enterprise unit (all acres of a crop per county are combined into one unit).
• Uses Projected and Harvested Prices.
• Producer selects coverage level.
• Dollar amount of production is determined using Net Production and Harvest price.
• Indemnity is paid if Dollar Amount of Production is less than Unit amount of Protection.

Coverage Options

• Coverage levels range from 50% to 75%, in 5% increments.
• Choice of 60% up to 100% of Projected Price.

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