Group Risk Plan - GRP
GENERAL SUMMARY - WHEAT

What is it? What are its Benefits?
Group Risk Plan (GRP) provides a dollar amount of protection. Insureds may select any amount of protection from 60 through 100 percent of the maximum protection per acre listed in the county actuarial. Group Risk Protection does not provide prevented planting, late planting, or replanting coverage.

Levels of Coverage
Coverage level are available from 70% to 90% in increments of 5%. GRP Catastrophic (CAT) coverage is available at 65% of the expected county yield and 45% of the maximum amount of protection per acre. Protection per acre is available from 60% to 100% of the county maximum protection per acre listed in the county actuarial.

Loss Payment
GRP coverage is based on the experience of the COUNTY rather than INDIVIDUAL FARMS. A loss payment triggers when the county average per-acre yield (the "payment yield") falls below the insured's "trigger yield."

Units
The coverage unit is all acreage of the crop in the county.

How It Works (corn illustration)

Assumptions

Amount of coverage selected $300/A

Percent of county yield selected 90%

Expected county yield 120 Bu./A.

Trigger yield 108 Bu./A

Payment yield 90 Bu./A.

Loss Payment

Payment calculation factor 16.7%

(108 Bu. minus 90 Bu. divided by 108 Bu.)
16.7% loss x $300 = $50 Loss payment per acre

Benefits

1. A simplified program that is easy to understand

2. It provides payment based on performance of a crop in a county as a whole

3. It is more appealing than CBOT crop yield contract because:

A. It triggers based on county rather than individual farmer's average yield

B. The grower's transaction cost is lower because of government cost share

NOTE: CHECK YOUR COUNTY ACTUARIAL FOR AVAILABILITY

Availability

GRP is available on major crops throughout the United States for which county yield data is readily available from the USDA.



Availabiilty varies by county. Please see the county actuarials for more complete information.