Multiple Peril Crop Insurance MPCI (APH Plan)
GENERAL SUMMARY

What is it? What are its Benefits?

Multiple Peril Crop Insurance provides comprehensive protection against weather related causes of loss and certain other unavoidable perils. Coverage levels are available from 50 to 75% in increments of 5% (80 and 85% coverage levels available in limited areas) of the Actual Production History (APH) up to 100% of the price election. Coverage is expressed as a production guarantee (APH yield times the coverage level) and may be adjusted for excessive moisture and quality deficiencies. Minimum coverage (CAT) is available at 50% of the APH and 55% of the price election (50/55). MPCI provides late planting, prevented planting, and replanting protection. (See the prevented planting brief for additional information on prevented planting).

Yield Guarantee
The guarantee is the approved yield, multiplied by the selected level of coverage and insured acreage.

Production to Count
The actual production plus any yield appraisals less any adjustments for excess moisture or poor quality results in the production to count for the insurance unit (if applicable).

Loss Payment
The loss payment is calculated by subtracting the net amount of production from the yield guarantee and multiplying the result by the MPCI price election and ownership share.

Basic and Optional Units (enterprise available in limited areas)
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, and by acreage grown under an organic farming practice. In AR, LA, and MS, units are only available by FSN. To qualify, a producer must have individual records for each unit and the planting pattern between the units must have a discernible break.

How It Works (corn illustration)



Reporting Changes or Crop Damage

Producers should notify their crop insurance agent or company immediately to get specific instructions if any of the following occurs:

• If the producer wants to make a change in the amount of protection

• If there is a change in the farm operation (entity, crops, county, etc.)

• If the crop is damaged or the producer plans to utilize production in such a way that harvested production cannot be determined


Benefits

• Confidence for preharvest crop sales

• Stability for long term business plans

• Improved risk and financial management

• Cash flow safety net

• Loan collateral

• U.S.D.A. shares in premium costs