Presentation on theme: "RMA Crop Production and Revenue Insurance Products Lesson Overview In this lesson, we will learn about: – Wyoming acres of annually-planted crops, and."— Presentation transcript:
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)
RMA Crop Production and Revenue Insurance Products Crops Covered Under MPCI: Barley Corn (for grain) Corn (for silage) Dry beans Proso millet Oats Potatoes Sugarbeets Sunflowers Wheat Malting barley
RMA Crop Production and Revenue Insurance Products Malting Barley- a slightly different approach First, purchase a feed barley policy Make decisions regarding: 1. units 2. coverage level 3. price election Decide if you want to purchase a malting barley price and quality endorsement 1. Option A is for non-contracted and contracted production combinations 2. Option B is for all contracted production
RMA Crop Production and Revenue Insurance Products Malting Barley- a slightly different approach (Cont…) The endorsement applies to all bushels contracted for delivery, regardless of feed barley units An indemnity is paid for any malt barley production that does not meet malting standards specified in the price and quality endorsement Option B indemnities are valued as the difference between the malting barley contract price and the MPCI feed barley price
MPCI Example Malting Barley: Option B RMA Crop Production and Revenue Insurance Products
Nick actually harvest 50 bushels of barley per acre. The barley harvested meets the malting barley standards. What is the value of his indemnity for the yield loss? 1.First, he receives an indemnity for the difference in bushels 2.Next, the value based on the feed barley price election is calculated 3.Then the total indemnity is calculated 4.Nick is only able to deliver 5,000 bushels of malting barley (50) bushels per acre x 100 acres). The malting barley indemnity is based on his coverage level which is 70% of 10,000 bushels
RMA Crop Production and Revenue Insurance Products Malting Barley- Exercise 1 (Cont…) 5. Bushels to be indemnified are valued as the difference between the malting barley contract price and the maximum price election for feed barley
RMA Crop Production and Revenue Insurance Products Malting Barley- Exercise 2 Question 1 – If Nick’s barley harvest yields 100 bushels per acre but is not of malting barley quality, will he receive an indemnity for the feed barley? Yes or no?
RMA Crop Production and Revenue Insurance Products Malting Barley- Exercise 2 (Cont…) Question 2 – What is Nick’s malt barley indemnity? Recall that Nick’s malting barley is insured for 7,000 bushels- 70% of his 10,000 bushel harvest.
RMA Crop Production and Revenue Insurance Products Topic Summary Let’s summarize what you have learned in this topic: How multiple peril crop insurance applies to many of the different crops grown in the state Calculations for covering coverage levels, indemnities for yield losses, and gross levels
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