Multiple Peril Crop Insurance | MPCI

 

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ABOUT MPCI

MPCI offers comprehensive protection through a production guarantee.  MPCI also provides prevented planting and late planting protection.  The Wheat or Barley Winter Coverage Endorsement is available for winter wheat and winter barley in counties with both fall and spring planting dates (late planting protection does not apply to acreage covered under this endorsement.)

 

MPCI COVERAGE

MPCI covers weather-related causes of loss and certain other unavoidable perils.

 

YIELD GUARANTEE

The MPCI yield guarantee is the historical yield multiplied by selected level of coverage (50-85% in increments of 5%) and insured acreage.

     

PRODUCTION TO COUNT

The production to count is the actual production, plus any yield appraisals, less any adjustments for excess moisture or poor quality.     

 

LOSS PAYMENT

To determine the loss payment, subtract production to count from the yield guarantee and multiply by the MPCI price election and ownership share.

 

UNITS

  • A Basic Unit is all acreage of the crop in the county which the policyholder has 100% ownership or shares with the same person.

  • Optional Units are divisions by sections or section equivalents (AR, LA, and MS units are only available by FSN), by irrigated or non-irrigated practices, and by acreage grown under an organic farming practice.

  • An Enterprise Unit is all insurable acreage of the insured crop in the county, regardless of interest or persons sharing.

 

BENEFITS OF MPCI

  • MPCI provides confidence for pre-harvest crop sales.

  • It provides stability for long-term business plans.

  • MPCI aids in improved risk and financial management.

  • The program provides a cash flow safety net.

  • An MPCI policy acts as loan collateral.

 

MPCI ENDORSEMENTS

  • Coverage Enhancement Option (CEO)

  • Freeze Date Extension for Hybrid Seed Corn (FE)

  • Increased Germination for Hybrid Seed Corn (GM)

  • Sugar Beet Replant (RS)

HOW IT WORKS FOR CORN:

           Bushel Guarantee                         120 Bu./A.    X    75%    X     100 A.                      =         9,000 Bu.

           Production to Count                      25 Bu./A.      X   100 A.                                        =         2,500 Bu.

           Production Loss                                                                                                               6,500 Bu.

           Loss Payment                              6,500 Bu.     X   $2.20 price election                      =        $14,300