Group Risk Protection (GRP)

A Group Risk Protection (GRP) policy is a county-based insurance product that pays the policyholder in the event the actual county yield falls below the trigger yield selected by the
policyholder.

To find the trigger yield for GRP, a policyholder picks a level of 90, 85, 80, 75, or 70 percent of the expected county yield. This expected county yield is set at the beginning of each crop year by the USDA’s Risk Management Agency (RMA) and is based on the county’s yield history since 1962.

GRP pays an indemnity when the actual county yield is below the county trigger yield. County yields are determined by the National Agricultural Statistical Service (NASS), a branch of the U.S. Department of Agriculture. NASS releases county yields in March of the year following harvest.

The amount of payment the policyholder receives depends on the level of protection selected when the unit is enrolled in GRP. The policyholder can choose a level from 60-100% of the maximum available protection. That maximum available protection is set each year by the Risk Management Agency (RMA).

Special Notes on GRP:

GRP does not cover replant, late planting, prevented planting, or loss specific to the policyholder’s unit. GRP is strictly a county policy, and a loss is determined based upon county yield only.
Indemnity payments are based off of the actual county yields, therefore they are paid in the spring of the following year.

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