A Crop Revenue Coverage (CRC) policy guarantees an amount of revenue per acre which is based on the approved yield history, or APH, or that farm or unit in combination with the commodity price and level of insurance. Crop Revenue Coverage (CRC uses the futures market prices and your approved APH (Actual Production History) yields to compute your revenue coverage and guarantee. A base market price, commonly known as the spring price, is determined during February by using the average of the daily closes of new-crop futures for corn (December futures contract) or soybeans (November futures contract). A harvest market price is determined by averaging the daily closes of the new crop futures prices during October for both corn and soybeans. The final revenue guarantee is computed by multiplying the higher of either the base market price or the harvest market price by the APH yield for your unit, by your chosen coverage level (50 to 85 percent). Your actual revenue for insurance purposes is computed by multiplying your actual yield by the harvest market price described above. You become eligible for an indemnity payment if your actual revenue falls below your revenue guarantee. The payment is equal to the difference. Note: CRC has No Price Floor and a 200% Price Ceiling. |
