1. PAR
Introduction

2. What is PAR? Private Area Revenue Supplemental insurance policy
Additional revenue protection
What is PAR? (Overview)
• Private Area Revenue (PAR) is a non-reinsured supplemental insurance policy (a “private product”) that stands alongside a Federal MPCI revenue policy.
• PAR provides growers the opportunity to purchase additional revenue protection based on an area plan model, similar to a Federal ARP policy.

3. How does PAR Work? Elect RP or ARP MPCI remains regardless of PAR
Revenue protection
How does PAR Work?
• First, the grower must elect to purchase a Federal revenue plan which includes the harvest price option (RP or ARP).
• The underlying MPCI remains in-force regardless of the PriceFlex election, and if alternate periods do not "win" (are not higher than spring base price for MPCI), the net effect is that the spring price is used per the MPCI policy provisions and there is no liability earned on the PriceFlex contract.
• Much like the Federal ARP plan, PAR offers revenue protection based on the traditional plant and harvest pricing periods for the crop, and the yield is determined as a planted offer of a county or district area.

4. How does PAR Work? Upper and Lower coverage levels
liability behaves like the ARP plan
PAR requirements
How does PAR Work?
• The limit of liability is subject to Upper and Lower coverage levels to be elected by the insured with a range of 95% down to 65% coverage. Unlike the ARP plan, the lower level of coverage is the point at which the revenue coverage stops.
• The liability factor also behaves like the ARP plan, offering up to 150% of the expected liability.
• As with most other private products, PAR requires all acres be insured by crop, by county.

5. Issuing Companies Issuing Companies
• Hudson, Great American, and ProAg

6. Sales Closing Date? Online Purchased on applicable MPCI SCD
• All PAR quotes must be purchased online by midnight on the applicable MPCI SCD.

7. PAR Availability Select counties for various crops
County availability based on yield data
Where is PAR Availability?
• PAR is available in select counties and districts for corn, soybeans, wheat, and cotton.
• The offer is based on the availability of yield data to establish a quantifiable area plan offer, as well as subject to the approval of the individual State Department of Insurance.
• PAR has been approved in the following states; (show map)

8. PAR Availability Where is PAR Availability?
• PAR is available in select counties and districts for corn, soybeans, wheat, and cotton.
• The offer is based on the availability of yield data to establish a quantifiable area plan offer, as well as subject to the approval of the individual State Department of Insurance.
• PAR has been approved in the following states; (show map)

9. Strategic Selling

10. Private Area Revenue Sell to above average yielding growers
Add Revenue protection on top of MPCI.
Similar to SCO, without level match
Sell to above average yielding growers (GRIP candidates).
Allows for additional revenue protection on top of MPCI.
Similar to SCO, but does not have to match level.

11. PAR buying decisions Lock in growers if the market is favorable
PAR “revenue put” with no upfront cost.
Agents need to be ready to lock in growers if the market allows for a profitable price hedge this summer.
PAR allows for a “revenue put” with no upfront cost. Unlike PriceFlex, liability attaches regardless of spring price.

12. PAR buying decisions Growers who hedge buy PAR
Post-price purchasers are more gamblers
Pre-price purchasers purchase again.
Growers who hedge are the same growers who buy PAR.
Post-price purchasers are more gamblers.
Pre-price purchasers are hedgers who will proactively purchase again.

13. THANK YOU
Questions?