Main » Services » About Us » FAQ's » News » Alerts » Contact » 9318377781 Local    8888984236 Toll Free
 
 

RICE

Crop Revenue Coverage (CRC)
provides revenue protection against a decline in market prices as well as a shortfall in production. Under CRC, the guarantee is in dollars. A loss situation arises when the dollar value of your production falls below the final dollar guarantee. CRC provides protection whether prices are rising or falling:

  • In a year of rising prices, production shortfalls are compensated at the higher market-based harvest price. This is important if any lost production must be replaced at higher market prices to fulfill delivery on a forward contract;

  • In years of falling prices, your minimum guarantee ensures that you will receive a pre-determined amount of income per acre, regardless of yields or prices.

Causes of Loss
CRC provides protection against unavoidable loss of revenue due to the following causes in the insurance period:

Adverse weather conditions1

Failure of irrigation water supply2
Fire
Harvest price less than base price

I
nsects3
Plant disease3
Wildlife

1Natural perils such as hail, frost, freeze, wind, drought, and excess moisture. 2If caused by an insured peril. 3But not damage due to insufficient or improper application of recommended control measures.

Important Dates
Note: Sales closing, final planting and acreage reporting dates vary by county. Consult a crop insurance professional for specific dates in your county.

Minimum Guarantee
The guaranteed minimum dollar protection is the average yield X base price X coverage level percent:
Example:
800 pounds per acre X $.60 X 75
percent = $360 per acre minimum guarantee

Harvest Guarantee
Average yield X harvest price X coverage level percent:
Example:
800 pounds per acre produced X
$.50 X 75 percent = $300 per acre harvest guarantee

Calculated Revenue
Value of your actual production determined by pounds produced X harvest price:
Example:
200 pounds per acre produced X
$.50 = $100 per acre calculated revenue

Note: The actual price you receive for selling your crop is not a factor in CRC calculations.

Loss Example
This example assumes average yield of 800 pounds per acre, base price of $.60, harvest price of $.50, 200 pounds per acre production-to-count, and 65-percent coverage level.

800 Pounds per acre approved yield
x .65 Coverage level
520 Pounds per acre guarantee basis
x .60 Base price per pound
$312 Minimum guarantee per acre

If harvest price is $.50 per lb, then the harvest guarantee would be $260
(520 pounds per acre X $.50 = $260 per acre)

$312 Final guarantee per acre (greater of minimum or harvest guarantee)
– 100 Calculated revenue (200 pounds per acre produced X $.50 harvest price)

212 Indemnity per acre
– 9 Approximate cost per acre
$203 Net indemnity per acre

 
 
 
 

 

Contact CIA for any inquiries that you have here.

Crop Insurers of America • 7 Baker Street • Sparta, Tn 38583
1-888-898-4236 crop@cropinsure.com

 © 2005/6 Crop Insurance Of America. All rights reserved
 site built by: Kneelindesign

`