Revenue Protection With Harvest Price

Insures both the price and the yield. Coverage is based on the producer’s APH and the established price of either the spring price or the fall price, whichever is higher.

Advantage: The producer can forward contract or commit the crop as security on a loan, or feeding obligations. If the price at harvest time drops, the producer will be insured by the Spring Price which will be higher, if the price in the fall rises and his production is low he will get paid the higher price for his losses.

If the producer has a crop failure and he needs the bushels, he can still buy the bushels at higher price because his insurance will be covered by the Fall Price.

Disadvantage: Because the coverage is higher, the cost of insurance is also higher.

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