Crop Management · February 2025 · 6 min read
Crop insurance is a critical risk management tool that protects farm income against yield losses and price declines. Understanding the different policy types and coverage levels helps you make informed decisions about how much protection to carry. The federal crop insurance program subsidizes a significant portion of premiums, making coverage accessible to most operations.
Revenue Protection (RP) is the most popular policy type, covering losses from both yield shortfalls and price declines. Your revenue guarantee is calculated by multiplying your actual production history (APH) yield by the higher of the projected or harvest price.
Yield Protection (YP) only covers yield losses and uses the projected price exclusively. RP is generally the better choice because it also protects against falling prices at harvest, which is why over 80 percent of insured acres are covered by RP policies.
You can select coverage levels from 50 to 85 percent of your expected revenue or yield. Higher coverage levels provide more protection but come with higher premiums.
Prevented planting coverage applies when weather or natural disasters prevent you from planting by the final planting date. Prevented planting payments are typically 55 to 60 percent of the revenue guarantee, providing a safety net when you cannot get into the field at all.
Replant coverage reimburses the cost of replanting a failed stand, up to a per-acre maximum. This provision is included automatically in most policies and helps offset the expense of buying additional seed and making another planting pass.
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Try the Crop Rotation PlannerCrop insurance is sold through private agents who are approved by the Risk Management Agency (RMA). All agents offer the same federally regulated policies at the same premiums, so choose one who is knowledgeable, responsive, and experienced with your crop types.
Key deadlines vary by crop and region. The sales closing date for spring-planted crops is typically March 15, and acreage reports are due by July 15 in most states. Missing these deadlines can result in reduced coverage or loss of eligibility, so mark them on your calendar well in advance.