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 Crop Revenue Insurance (CRC): Topic Overview In this topic, 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)

RMA Crop Production and Revenue Insurance Products Crop Revenue Coverage Insurance (CRC)- Overview – CRC covers revenue losses due to a low yield or low price – You must establish an APH for each group – You may insure at the optional, basic or enterprise unit level – You may choose a coverage election 50 to 75% of the APH and 80 to 85% for some crops as allowed by the applicable policy – Premium rates and premium subsidies vary by coverage

Crop Revenue Insurance Base Prices* RMA Crop Production and Revenue Insurance Products Producers may seek current crop year CRC base prices (spring prices) by selecting Data to view Price Addendums shown at In the examples these prices are denoted as CRC Base Price The CRC Base Prices for spring-planted crops are announced, based on specific futures policy settlement price for harvest time delivery, a considerable time prior to the sales closing dates for crop insurance for spring-planted crops

RMA Crop Production and Revenue Insurance Products Crop Revenue Coverage Insurance (Cont.) – RMA establishes a base price based on a specified average futures policy settlement price for harvest time delivery – The minimum revenue guarantee equals: APH x coverage level x 100% of the CRC base price – The minimum revenue guarantee is adjusted upward if the CRC harvest price is greater than the CRC base price

RMA Crop Production and Revenue Insurance Products Crop Revenue Coverage Insurance (Cont.) – The wheat harvest price cannot be more than $2.00 per bushel above or below the base price – The corn harvest price cannot be more than $1.50 per bushel above or below the base price – You will receive indemnity when: The actual yield x the CRC harvest price is less than the minimum revenue guarantee – CRC insurance provides: Downward yield protection Downward price protection Upward price participation – Cat coverage is not available for CRC

Corn for Grain Corn for Grain Production Insured Counties for Corn (for Grain), CRC Coverage Crop Revenue Coverage (CRC) insurance covers only corn (harvested for grain) and wheat in Wyoming RMA Crop Production and Revenue Insurance Products

RMA Crop Production and Revenue Insurance Product Corn for Grain: Insurance Parameters Insurable Crop – Only corn planted for harvest as grain may be insured Insurable Units – Corn for grain may be insured at the optional, basic or enterprise level. Coverage Election – 55, 60, 65, 70, 75 or 85% of APH Price Election – 100% of base price

CRC Irrigated Corn Example RMA Crop Production and Revenue Insurance Products

Corn for Grain- Exercise 1 Let’s say that the Johnson Borthers’ actual harvest is 75 bushels per acre (yield protection), and the CRC harvest price $2.32 per bushel. Will the producer receive an indemnity? (Yes/No)

RMA Crop Production and Revenue Insurance Products Corn for Grain- Exercise 2 Again the Johnson Brother’s actual harvest is 75 bushels per acre (yield protection) and the CRC Harvest Price is $2.50 per bushel. Will they receive an indemnity? (Yes/No)

Wheat Wheat Production Insured counties for Wheat, CRC Coverage The seven counties account for 88% of the Wyoming acres planted to wheat Spring wheat must be irrigated to be insurable in Converse, Goshen, Natrona, Niobrara and Platte Counties RMA Crop Production and Revenue Insurance Products

Crop Revenue Coverage Insurance Parameters for Wheat – Insurable Crop Wheat planted for harvest as grain – Insurable Units Wheat may be insured at the optional, basic, or enterprise levels – Coverage Election 50, 55, 60, 65, 70, 75 or 85% of APH – Price Election 100% of base price

Wheat Example RMA Crop Production and Revenue Insurance Products

Wheat- Exercise If the Williams’ actual harvest is 15 bushels per acre and the CRC Harvest Price is $3.75 per bushel, what is their minimum revenue guarantee? Will they receive an indemnity? (Yes/No)

RMA Crop Production and Revenue Insurance Products Topic Summary In this topic, you learned about: – Crop Revenue Insurance Coverage (CRC) in Wyoming – CRC is only available for corn for grain and wheat – How to calculate minimum revenue guarantees – How harvest price may change the minimum revenue guarantee