Policies Available

The RP plan of insurance protects a policyholder's income when the crop insurance revenue falls below the guaranteed crop insurance revenue. It provides coverage to protect against loss of revenue caused by low prices, low yields, or a combination of both.

Revenue Protection calculates a policyholder's revenue guarantee by using their Actual Production History (APH) yield, times the higher of the Projected Price or the Harvest Price, times the selected coverage level (50 to 85 percent). The Projected Price and Harvest Price for each crop is determined by the Commodity Exchange Price Provisions. The Projected Price and Harvest Price are calculated using Chicago Board of Trade (CME) futures contracts. The Projected Price is established during the month of February by using the average of the daily closes of new-crop futures for corn (December futures contract) or soybeans (November futures contract). The Harvest Price is established during the month of October by using the average of the daily closes of new-crop futures for corn (December futures contract) or soybeans (November futures contract).

A policyholder becomes eligible for an indemnity payment when the actual crop insurance revenue (actual harvest yield on that unit times Harvest Price) falls below the minimum or revised crop insurance revenue guarantee. The amount of indemnity is determined by subtracting the calculated actual revenue from the final revenue guarantee; you are paid an amount equal to the difference.

RP has a price fluctuation limit of a 200% increase from the Projected Price to the Harvest Price and has no downside limit from the Projected Price to the Harvest Price. This means that the minimum revenue guarantee can increase as much as 200% from spring to fall. This benefit gives a policyholder the peace of mind to hedge or forward contract guaranteed bushels knowing that if there is a yield loss the policyholder will be paid at the higher of the Projected Price or the Harvest Price in order to cover their financial obligations to their grain buyer or brokerage account.

A policyholder can also elect to purchase RP with a Harvest Price Exclusion (HPE). If this option is chosen the minimum crop insurance revenue guarantee will not be recalculated should the Harvest Price end up being higher than the Projected Price. Therefore the policyholder will have no crop insurance protection against price increases that create financial obligations from guaranteed bushels hedged or forward contracted.

Please note that local basis is NOT considered in the calculation of the crop insurance revenue guarantee or actual crop insurance revenue.

The YP plan of insurance protects a policy holder against a loss in yield only, not a drop in price. This plan guarantees a yield based on the individual producer's actual production history (APH). Coverage levels, depending on the area, are available from 50% up to 85% of the producer's APH. The producer's Production Guarantee is their APH multiplied by the selected Coverage Level multiplied by the planted acres.

A payment will be made when the producer's actual yield on a unit falls below the yield guarantee on that unit, as long as the shortage is due to an insurable cause of loss. The amount of indemnity is determined by multiplying the production shortage per acre by the Projected Price. The Projected Price for each crop is determined by the Commodity Exchange Price Provisions. The Projected Price is calculated using Chicago Board of Trade (CME) futures contracts and established during the month of February by using the average of the daily closes of new-crop futures for corn (December futures contract) or soybeans (November futures contract)

The ARP plan of insurance is a county-based insurance product that pays the policyholder in the event the actual county revenue falls below the county trigger revenue selected by the policyholder. The trigger revenue is calculated by multiplying the ARP Base Price by the expected county yield, then multiplying this by the level of coverage selected by the producer. The ARP Base Price is the average of the daily closes of new-crop futures for corn (December futures contract) or soybeans (November futures contract) during the month of February. The actual county revenue is computed by multiplying the actual county yield by the Harvest Price. The Harvest Price is determined by using the average of the daily closes of new-crop futures for corn (December futures contract) or soybeans (November futures contract) during the month of October. The amount of payment the policyholder receives depends on the level of protection selected. The ARP plan of insurance automatically includes Harvest Price Protection which protects an insured when prices rise from spring to fall. If prices rise from spring to fall, the insureds revenue guarantee is re-figured at the higher price which will increase the guarantee. A policyholder can also elect to purchase ARP insurance with a Harvest Price Exclusion Option. If this option is elected the insureds revenue guarantee will use the spring price only, with no protection if prices are higher during the Harvest Price Discovery Period.

Note: ARP does not cover replant, late planting, prevented planting, or loss specific to the policyholder's unit. ARP is strictly a county policy, and a loss is determined based upon county yield only. ARP has a price fluctuation limit of a 200% increase from the Base Price to the Harvest Price. ARP and ARP-HPE does not have a limitation for downward price movement from the Base Price to the Harvest Price. Indemnity payments are based off of the actual county yields, therefore they are paid in the spring of the following year.

The AYP plan of insurance is a county-based insurance product that pays the policyholder in the event the actual county yield falls below the county trigger yield selected by the policyholder. The expected county yield is set at the beginning of each year by the USDA’s Risk Management Agency (RMA) and National Agricultural Statistics Service (NASS) and is based on the county's yield history. AYP pays an indemnity when the actual county yield is below the county trigger yield. The amount of payment the policyholder receives depends on the level of protection selected when the unit is enrolled in AYP and the policy Base Price. The AYP Base Price is the average of the daily closes of new-crop futures for corn (December futures contract) or soybeans (November futures contract) during the month of February.

Note: AYP does not cover replant, late planting, prevented planting, or loss specific to the policyholder's unit. AYP is strictly a county policy, and a loss is determined based upon county yield only. Indemnity payments are based off of the actual county yields, therefore they are paid in the spring of the following year.

Crop-Hail coverage provides protection against physical damage and loss to a crop due to an insured peril. Some examples of insured perils are; Hail, Fire and Lightning, Transit Coverage to the first place of storage, and Fire Department Service Charges. The amount of loss paid will be the limit of insurance applying at the time of the loss multiplied by the agreed percentage the crop yield is reduced because of an insured peril. There is a variety of deductible plans available that allow for a producer to partially self-insure and in turn reduce premium costs. There are also additional optional endorsements available that can be added to a Crop-Hail policy to further protect the crop.

• Federal Crop Insurance Is:
  
  *NOT FDIC INSURED *NOT A DEPOSIT *NOT GUARANTEED BY PEOPLES STATE BANK OF COLFAX
  
  View the Purchase of Insurance Disclosure
  
  Peoples State Bank of Colfax is an Equal Opportunity Provider; for more information or to report program discrimination please click the following link:
  
  http://www.ascr.usda.gov/complaint_filing_cust.html
  
  View the Non-Discrimination Statement
• Projected and Base Price:
  Corn-Average closing price of December Futures Contract of the Chicago Board of Trade (CME) during the month of February.
  Beans-Average closing price of November Futures Contract of the CME during the month of February.
• Harvest Price:
  Corn-Average closing price of December Futures Contract of the CME during the month of October.
  Beans-Average closing price of November Futures Contract of the CME during the month of October.
  Harvest Price limited to 200% of the Projected or Base Price.
• Crop Insurance Actual Revenue:
  Corn-Average closing price of December Futures Contract of the Chicago Board of Trade (CME) during the month of February
  Beans-Average closing price of November Futures Contract of the CME during the month of February.
• APH - Actual Production History:
  The yield information for previous years, including planted acreage and harvested production, used to determine your yield for insurance purposes.
• Expected County Yield:
  Set each crop year by the Risk Management Agency (RMA) and the National Agricultural Statistics Service (NASS). Based on planted, harvested and unharvested acres, in addition to yield trends.
• Trigger Revenue:
  AYP price multiplied by the expected county yield, then multiplied by the level of coverage. Local basis is not considered.
• Actual County Revenue:
  Actual County Yield X Harvest Price.
• Actual County Yield:
  Determined by the Risk Management Agency (RMA) in March of the year following harvest.