revenue protection

This policy guarantees an amount of revenue (based on the individual producers actual production history (APH) x commodity price) called the final guarantee. The coverage and exclusions of RP are similar to those for the standard Yield Protection Plan (YP) policy. This guarantee is based on the greater of the spring-time generated price (projected price) or the harvest-time generated price (harvest price). While the guarantee may increase, the premium will not. Premium will be calculated using the projected price. Since the protection of producer revenue is the primary objective of RP, it contains provisions addressing both yield and price risks. RP covers revenue losses due to a low price, low yield, or any combination of the two. A loss is due when the calculated revenue (production to count x harvest price) is less than the final guarantee for the crop acreage.