Sorensen Insurance Agency

6 E Main St  Wapakoneta, OH 45895

{hone:  888-417-8623 or 419-738-8623  Fax:  419-738-7232

email: agsoren@bright.net

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Revenue Coverage

Revenue Protection Plan (RP) - RP insures producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease, and revenue losses caused by a change in the harvest price from the projected price. The farmer selects the amount of average yield he or she wishes to insure. The projected price and the harvest price are 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts. The amount of insurance protection is based on the greater of the projected price or the harvest price. If the harvested plus any appraised production multiplied by the harvest price is less than the amount of insurance protection, the farmer is paid an indemnity based on the difference.

Revenue Protection With Harvest Price Exclusion (RPHPE) - policies insure farmers in the same manner as Revenue Protection polices, except the amount of insurance protection is based on the projected price only (the amount of insurance protection is not increased if the harvest price is greater than the projected price). If the harvested plus any appraised production multiplied by harvest price is less than the amount of insurance protection, the farmer is paid an indemnity based on the difference.

Area Revenue Protection (ARP) – ARP is based on the experience of the county rather than on your own individual farm. APH is not required to be reported for this policy. An ARP policy includes coverage against potential loss of revenue resulting from a significant reduction in the county yield or commodity price of the crop. When the county yield is released, the county payment revenue will be calculated prior to April 16 the following crop year. ARP will pay a loss if the county revenue is less than the trigger revenue selected. You may have an individual loss to yield or revenue on your farm and not receive a payment.

Yield Coverage

Yield Protection Plans (YP) - The new Yield Protection Plan provides coverage against production loss for crops for which revenue protection is available but was not elected. This policy insure farmers in the same manner as APH polices, except a projected price is used to determine insurance coverage. The projected price is determined in accordance with the Commodity Exchange Price Provisions and is based on daily settlement prices for certain futures contracts. The farmer selects the percent of the projected price he or she wants to insure.

Actual Production History (APH) / Multi Peril Crop Insurance (MPCI) - This policy insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. The farmer selects the amount of average yield he or she wishes to insure. The farmer also selects the percent of the predicted price, established annually by RMA, he or she wants to insure. If your production to count is less than the yield guarantee a loss will be paid. Indemnities are calculated by multiplying this difference by the insured percentage of the price selected when crop insurance was purchased and by the insured share.  Your yield is guaranteed on your individual APH. APH is only available for oats, popcorn, rye, flax, and buckwheat.

Area Yield Plan (AYP) –This type of coverage is based on the individual counties experience rather than your own individual farms loss. APH is not required for this plan. Loss is paid in the event the county average per acre yield or payment yield falls below the trigger yield selected. Payments are made by April 16th after the year the crop was insured. Remeber with this type of coverage is based on county yeilds and not inividual yields, you may have a low yield on your farm and not receive a payment.

Catastrophic Coverage (CAT) - Provides the minimum coverage available on an APH policy. For a $300 fee per crop you guarantee 50% of your yeild  history at 55% of the established price.

MPCI COVERAGE CHOICES