A Revenue Assurance (RA) policy protects a policyholder’s income when the crop revenue falls below the guaranteed revenue. It provides coverage to protect against loss of revenue caused by low prices or low yields or a combination of both.

Revenue Assurance (RA) 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).

The revenue guarantee is computed by multiplying the base 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.

You can elect to purchase RA insurance with the Harvest Option (HO), where the revenue guarantee does increase if the harvest price is higher than the February price.

Note: RA has No Price Floor and a 200% Price Ceiling.

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