Yield Protection (YP) is a multi-peril crop insurance products that provides protection against losses in yield due to nearly all natural disasters. For most crops, that includes drought, excess moisture, cold and frost, wind, flood, and unavoidable damage from insects and disease. These products guarantee a yield based on an individual producer’s actual production history. If the production to count is less than the yield guarantee, the insured is paid a loss.

 

 

How Does It Work?

 

•  Establishes a guarantee of bushels per acre.

 

•  Yield Protection price is established by using 100% of the average closing price of the December

   Futures Contract of the Chicago Board of Trade (CBOT) during the month of February for corn. For

   soybeans, it is 100% of the average closing price for November Futures Contract on the CBOT during

   the month of February.

 

•  Pays an indemnity if the production is less than the guarantee.

 

 

Coverage Level

 

Coverage level is the percentage of APH yield selected by the producer. The producer can select a coverage level of the APH yield ranging from 50% up to 85% in 5% increments. A higher yield election increases the yield guarantee.

 

 

Benefits

 

•  Offers a competitive premium

 

•  Subsidized by the Federal Crop Insurance Corporation (FCIC)

 

•  Protection against production loss

 

•  Based on a producer’s own production history

 

•  Provides coverage levels ranging from 50% to 85% of the APH in 5% increments

 

•  Provides coverage on basic and optional units

 

•  Enterprise and whole-farm unit coverage is available in some areas