Revenue Protection (RP) Insurance

Yield Protection (YP) only covers production shortfalls from natural causes and pays at the projected price. Revenue Protection (RP) covers both yield losses and price declines. Additionally, RP includes harvest price replacement, which means if prices rise, your guarantee increases. Most farmers choose RP because it provides broader protection for a relatively small additional premium.

The projected price is based on the average daily settlement price of the relevant futures contract during a specific discovery period set by the USDA. For corn and soybeans, this is typically the average of February CBOT futures prices. The harvest price is determined similarly using October or November futures. These prices are set by the market, not by your insurance agent or carrier.

Harvest price replacement is a unique feature of Revenue Protection. If the harvest price ends up higher than the projected price, your revenue guarantee is recalculated using the higher harvest price. This means if you suffer a yield loss when prices are high, your indemnity payment reflects the higher market value of the lost production. This feature is included at no extra cost with RP.

Revenue Protection is available at coverage levels from 50% to 85% in 5% increments. Higher coverage levels provide a larger revenue guarantee but come with higher premiums. The federal government subsidizes a portion of the premium at every level, with the subsidy percentage being highest at lower coverage levels. Most farmers in Missouri, Iowa, Kansas, and Illinois choose between 75% and 85% coverage.

RP-HPE is a lower-cost alternative that works the same as standard RP but does not include the harvest price replacement feature. Your revenue guarantee is always based on the projected price, never the harvest price. RP-HPE premiums are lower, but you lose the upside protection that standard RP provides. Most Brawner clients choose standard RP because the additional cost for harvest price replacement is typically modest.

The sales closing date for spring-planted crops like corn and soybeans in Missouri, Iowa, Kansas, and Illinois is typically March 15. For fall-seeded crops like winter wheat, the deadline is usually September 30. You must have your RP policy in place before the sales closing date. Contact Brawner well in advance to review your options and ensure you do not miss the window.