RMA Crop Production and Revenue Insurance Products

2. RMA Crop Production and Revenue Insurance Products Lesson Overview • In this lesson, we will learn about: • Wyoming acres of annually-planted crops and acres insured • Multiple Peril Crop Insurance • Catastrophic Risk Protection (CAT) • Crop Revenue Insurance (CRC) • Group Risk Plan (GRP) • Group Risk Income Protection (GRIP) • Forage Insurance • Seed and Specialty Crop Insurance • Alfalfa Seed Protection Insurance • Nursery Crop Insurance • Adjusted Gross Revenue-Lite (AGR-Lite)

3. RMA Crop Production and Revenue Insurance Products Group Risk Income Protection (GRIP): • Lesson Overview • In this lesson, you will learn about: • Wyoming acres of annually-planted crops, and acres insured • Multiple Peril Crop Insurance • Catastrophic Risk Protection (CAT) • Crop Revenue Insurance (CRC) • Group Risk Plan (GRP) • Group Risk Income Protection (GRIP)

4. RMA Crop Production and Revenue Insurance Products GRIP Overview • Under GRIP, the producer’s income per acre, his yield times and the price of selling the commodity does not enter indemnity calculation

5. RMA Crop Production and Revenue Insurance Products GRIP for Wheat Example • Let’s take a look at an example. Arlen is a wheat producer, and is working to find his group risk insurance protection

6. GRIP Expected County Prices Producers often want to know where to obtain the expected price for the crop they wish to insure under Group Risk Income Protection * Producers may go to the RMA website: http://rma.usda.gov select Bulletins and Handbooks and the Product Management Bulletins to locate the appropriate announcement for expected county prices ** Expected county prices for spring-planted crops covered by GRIP are announced in the spring prior to the insurance sales closing dates RMA Crop Production and Revenue Insurance Products

7. RMA Crop Production and Revenue Insurance Products GRIP for Wheat Example • A producer will be paid an indemnity when the actual county revenue, a value determined by multiplying the final county yield times the harvest price, is less than the producer’s trigger revenue

8. RMA Crop Production and Revenue Insurance Products • GRIP for Wheat Example (cont.) • How will the indemnity be calculated? • First a payment calculation factor is determined as: • Payment Calculation Factor= [(Trigger Revenue- County Revenue)/(Trigger Revenue)] • Then, the per acre indemnity is calculated as: • Per Acre Indemnity = (Payment Calculation Factor) x (Protection per Acre) • Total Indemnity= (Per Acre Indemnity) x (Acres Insured)

9. RMA Crop Production and Revenue Insurance Products • Using Arlen’s information from the example page, let’s say that the actual county revenue, after the harvest price and final county yield data were known, is determined to be $57. 60 per acre Will Arlen receive an indemnity on the 100 acres he had insured? (Yes/No)

10. RMA Crop Production and Revenue Insurance Products Group Risk Income Protection (GRIP): Summary • In this lesson, you have learned: • Producers likely to use GRIP are those with farm yields that are highly correlated with county yields for the crops they wish to insure • Currently GRIP has limited availability in Wyoming. It is available for corn (for grain) in Goshen County. It is available for wheat in Goshen and Laramie counties • As GRIP is a group risk product, based on county-level crop revenues, its premium subsidy rates by coverage level are the same for GRP