Margin Protection provides coverage against an unexpected decrease in operating margin (revenue less input costs). Margin Protection is area-based, using county-level estimates of average revenue and input costs to establish the amount of coverage and indemnity payments. Because Margin Protection is area-based (average for a county), it may not reflect your individual experience. A payment may be made when the harvest margin for the county is lower than the trigger margin due to a decrease in revenue and/or an increase in input costs. Margin Protection will cover a portion of that shortfall.
Harvest Price Option
HPO allows a grower to choose to include replacement cost coverage to the Margin Protection policy. Similar to many popular revenue-based policies, if the harvest price is greater than the projected price, the expected margin and the trigger margin are recalculated based on the higher harvest price.
Underlying Base Policy Levels: 50% – 85% (in 5% increments)
The catastrophic coverage level is not available for Margin Protection, but may be selected for the base policy.
The information contained in this publication is for general purposes only and shall not modify the terms of any insurance policy. Please refer to policy information found in the actuarials for your commodity/plan type.