GENERAL SUMMARY
What is it? What are its Benefits?
This program provides comprehensive protection through a dollar guarantee based on the board of trade's early futures price (base price).
• Additional protection is provided if the near harvest futures price (harvest price) exceeds the base price
• The perils covered are weather related causes of loss, certain other unavoidable perils, and price fluctuations
• CRC provides prevented planting protection
• The Winter Wheat Coverage Endorsement is available for wheat in counties with both spring and fall planting dates
• Replanting coverage is available for wheat in counties with spring and fall final planting dates as well as counties with spring only planting dates
• Prevented planting payments are determined by using the higher of the base or harvest price
• The base price is used for replanting payments
• Coverage levels are available from 50-75% in increments of 5% (80 and 85% levels available in limited areas).
Dollar Guarantee
• The guarantee is the approved yield (APH) times the level of coverage, times the insured acreage, times the higher of the base or harvest price.
• The maximum increase or decrease between the base and harvest price is $2.00/Bu. on wheat, $1.50/bu. on corn and grain sorghum, $3.00/bu. on soybeans, $0.70/lb. on cotton, and $0.05/lb. on rice.
• This limit applies to both the guarantee and value of production.
Value of Production
The value of production to count is the actual yield plus any appraisals, multiplied by the harvest price as defined by the policy provisions. The price at which the crop is sold does not affect the indemnity payment.
Loss Payment
To calculate a payable loss, subtract the value of production (bushels times the defined harvest price) from the dollar guarantee and multiply by the ownership share.
Units
The basic insurance unit is all the acreage of the crop in the county in which the policyholder has 100% ownership or shares with the same person. Most basic insurance units can be further divided into optional units. Optional units may be divided by sections or section equivalents (in areas without sections or section equivalents, separate farm serial numbers (FSN) may be used), by irrigated or dryland practices, by initially planted winter wheat or initially planted spring wheat (if winter and spring types are shown on the actuarial documents), and by acreage grown under an organic farming practice. In AR, LA, and MS, units are only available by FSN. To qualify, an insured must have individual records for each unit and the planting pattern between the units must have a discernible break. Growers can also choose a county crop enterprise unit at a reduced premium rate.
Benefits of CRC
