In March 2010, the USDA’s Risk Management Agency (RMA) released the Common Crop Insurance Policy Provisions—commonly referred to as the “Combo Policy”—combining the yield-based crop insurance policies with the revenue-based policies. They combined the principle features of the five insurance plans that producers bought most often—Actual Production History (APH), Crop Revenue Coverage (CRC), Revenue Assurance (RA), Income Protection (IP), and Indexed Income Protection (IIP) into one policy. RMA also developed a single rating and pricing component so all insurance coverage is consistent in insurance protection and cost to producers.
This new policy allows producers to elect either yield protection or revenue protection for all crops with a 2011 contract change date of April 30, 2010 or later, which includes barley, canola, corn, cotton, grain sorghum, malting barley, rapeseed, rice, soybeans, sunflowers and wheat. The other insurable crops not listed here are insurable with the same yield or dollar protection they previously had available.
The new policy should make risk management decisions simpler for producers as there is less duplication of information, less paperwork, less confusion, and fewer materials to be studied. However to make an informed decision, producers need to understand how these changes have affected their options.
This workshop will provide an overview of the new Combo Policy, with a comparison of the features of each plan. It will also provide a general overview of crop insurance availability for the 2011 crop year. These materials have been used nationwide to train insurance agents and instruct producers on this change to the crop insurance program.
|Conference||2011 Extension Risk Management Education National Conference|
|Presentation Type||30-Minute Concurrent|