Income Protection/Indexed Income Protection
IP is a revenue plan that, based on the individual producer's APH, protects against
a loss of income when prices and/or yields fall. While IP looks a lot like CRC,
it does not have the increasing price function of CRC. The guarantee and the
premium will be calculated using the spring-time generated price (projected
price). An indemnity is due when the revenue to count (production to count x
harvest price) is less than the amount of protection.
Note: Terrorism is not an exposure covered by Federal Crop Insurance Corporation
on any of the Federally reinsured crop insurance policies (RA, MPCI, CRC,
etc.). These policies cover losses due to drought, flood, or other
natural disasters.
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