Multiple Peril Crop Insurance
Multiple Peril Crop Insurance (MPCI) provides comprehensive protection against
weather-related causes of loss and certain other unavoidable perils. Coverage
is available on over 76 crops in primary production areas throughout the U.S.
at 50 to 85 percent of the actual production history (APH) for the farm. An
indemnity price election from 60 to 100 percent of the Federal Crop Insurance
Corporation expected market price is selected at the time of purchase. Minimum
Catastrophic Risk Protection (CAT) coverage is available for an administrative
fee of only $100 per crop per county. MPCI coverage provides protection against
low yields, poor quality, late planting, replanting costs and prevented
planting.
Yield Guarantee
The yield guarantee is the historical actual production history (APH) yield
times the level of coverage, times the insured acreage, times the insured's
share. The APH yield is determined from producer production records for a
minimum of 4, up to 10 consecutive crop years. For producers who provide less
than 4 years of actual yields, variable Transitional "T" Yields are used to
complete the 4-year database. However, the approved APH yield for producers who
elect not to supply records is limited to 65 percent of the applicable "T"
Yield for the first year the producer is insured.
Production To Count
Production to count is all harvested and appraised production for the unit.
Appraised production includes, but is not limited to, production lost to
uninsured causes, and mature unharvested production (may be adjusted for
quality deficiencies and excess moisture).
Units
A unit is defined as that acreage of the insured crop in the county which is
taken into consideration when determining the guarantee, premium, and the
amount of any indemnity (loss payment) for that acreage. The basic insurance
unit is all insurable acreage of the insured crop in the county on the date
coverage begins for the crop year in which the producer has a 100 percent share
or which is owned by one entity and operated by another specific entity on a
share basis. Basic units may be further divided into optional units. Optional
units are determined by section, section equivalents, FSA Farm Serial Number,
noncontiguous land (for certain perennial crops) and irrigated and
non-irrigated practices. When the policy allows, optional units may be
established, provided the crop is planted in a manner that results in a clear
and discernible break in the planting pattern at the boundaries of each
optional unit, and the producer keeps separate identifiable records of planted
acreage and harvested production for each optional unit.
Contract Changes
MPCI is a continuous policy and will remain in effect for each crop year
following the acceptance of the original application. Producers may cancel the
policy, a crop, a county, or a specific crop in a specific county, after the
first effective crop year, by providing written notice to the insurance
provider on or before the cancellation date shown in the applicable crop
provisions. Producers must request policy changes from their insurance provider
on or before the sales closing date for a change of price election or coverage
level. In addition, requests to increase the maximum eligible prevented
planting acreage above the limitations contained in the crop policy must be
made by the sales closing date for the applicable crop. Contract changes
involving a successor-in-interest application and corrections of a producer's
name, address, identification number, administrator, etc. may be made at any
time.
Reporting of Acreage and Crop Damage
Each crop year the producer is required to submit an acreage report by unit for
each insured crop. The acreage report must be signed and submitted by the
producer on or before the acreage reporting date contained in the Special
Provisions for the county for the insured crop. In the event of crop damage,
producers should immediately notify their insurance provider of the damage.
Crop Availability
Crops covered by MPCI are as follows: almonds, apples, beans (canning and
processing) canola, citrus, citrus trees, corn, grain sorghum, soybeans, upland
cotton, extra long staple cotton, cranberries, dry beans, figs, Florida Fruit
trees, millet, nursery, peaches, peanuts, pears, peas, peppers, plums, popcorn,
potatoes, prunes, raisins, rice, safflower, wheat, barley, oats, rye, flax,
stone fruit, sugar beets, sugarcane, sunflower seeds, sweet corn (canning and
freezing, and fresh market), tobacco, tomatoes (canning and processing),
tomatoes (fresh market), and walnuts.
MPCI Benefits
MPCI benefits include cash-flow protection, good loan collateral, added
confidence when developing crop marketing plans, stability for long-term
business plans and family security. The Government shares in the premium costs.
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