A revenue policy like CRC gives you protection against lost revenues caused by low yields, low prices, or both. When connected to your marketing program, a CRC policy insures your profitability, not just your expenses. So go ahead and take advantage of high prices during the growing season to market your crop....because if you have CRC, you know you have the revenue guarantee to cover bushels that you commit in forward pricing or other market options. You have an established revenue guarantee per acre, and unlike a pure yield-based crop insurance policy, you may net a higher indemnity payment.
Big Picture
- CRC guarantees revenue per acre with comprehensive protection against weather-related losses and certain other unavoidable perils, including crop price reductions.
- CRC protects against low prices, low yields, poor quality and late planting, depending on crop policy provisions.
- The final guarantee is set at the higher of the minimum guarantee set at planting, or the harvest guarantee.
Benefits
- CRC helps with your marketing plan by guaranteeing both upside and downside revenues, with a minimum revenue guarantee.
- Calculates losses based on the harvest market price to help protect your revenue and satisfy your contracts despite low yields.
- Provides a bottom-line income guarantee for operating loans.
- Prices set using regional commodity exchanges to more closely reflect area price differences.
- Available for corn, soybeans, wheat, grain sorghum, cotton and rice.
Pays When Harvest Revenue is less than final revenue guarantee.
CRC Example
Situation: Loss of production, higher price at harvest
Spring Base Price: $4.05
Harvest Price: $4.50
Final Revenue Guarantee: APH (180 bu) x Level (.85) x Harvest Price ($4.50) = $688.50/Acre
Harvest Yield: 125 bu/Acre
Harvest Revenue: Yield (125 bu) x Harvest Price ($4.50) = $562.50/Acre
Indemnity Payment:
Final Guarantee ($688.50) - Harvest Revenue ($562.50) = $126/Acre