Revenue Protection
Revenue protection is a Multi-Peril Crop Insurance (MPCI) plan that is managed by the Federal Crop Insurance Corporation (FCIC). You would purchase this plan from a crop insurance agent (like me), but the plan is managed by, and the premium is subsidized by, the FCIC. This means that you pay part of the premium and the remainder is paid for you.
Revenue Protection accounts for more than 90% of the coverage that is elected today. It is very popular because it protects against lower yields, lower prices, or a combination of both.
This plan has the feature that if the harvest price (price set at the time of harvest) is higher than the projected price (price set before you even start planting), the revenue guarantee increases - you can elect to exclude this feature to lower your premium, but I think this feature really helps to mitigate price risk. However, keep in mind that for RP, the harvest price will not be greater than the projected price multiplied by 2.00 (No more than double up on price).
This plan covers ring causes of loss listed in the Crop Provisions. However, the Policyholder must protect the crop from further damage, in cases such as plant disease, pests, and weed control.
The following crops are covered by this policy: Barley, Canola, Corn, Cotton, Grain Sorghum, Rice, Soybeans, Sunflowers, and Wheat
Here is a very basic calculation for Indemnity Payments. NOTE: Every producer has different options and other factors involved that may affect this calculation… this is just so you can understand this plan better.
Before you plant:
APH x Coverage Level x Projected Guarantee = Minimum Guarantee/Ac. (In Theory, if you make less than this amount, you should get a payment)
After you harvest:
Total bushels actually harvested/acre x harvest price = Calculated Revenue/Ac. (This would be your total income if you had sold your entire crop at the harvest price)
Your (in theory because there may be other factors possibly thrown in - Call your agent!) indemnity payment would be:
Minimum guarantee per acre - Calculated Revenue per acre = Amount you get per acre (If you get a negative # you don’t qualify for a claim payment)
So the above calculations show how much you might get paid if you have a claim. How much will this plan cost you? The main factors that determine your premium are unit structure and coverage level. These two factors determine the subsidy % that you may qualify for.
Unit Structure
Basic Units - middle of the road on premium cost
Optional Units (micro-level protection) - most expensive premium cost
Enterprise Units (macro-level protection) - unit with lowest premium cost
Whole Farm Unit - includes all insurable acreage of all the insured crops in the county (can put multiple crops together, treat as one crop)
Other factors that are needed to provide a quote for how much this plan will cost you are (not limited to) what crop are you growing, what county and state are you in, what is the county/individual policyholder’s yield, and what options you would like to add to the base policy.
I would love to get you a quote if you are interested in this plan, so please reach out with any questions you may have.
Also, you can always find the most up to date information directly from USDA, at https://www.rma.usda.gov/about-crop-insurance/fact-sheets
updated 5/14/2025 - by Sharon Dyer
This information is not all inclusive and is meant to be used for general guidelines for educational purposes only. You the reader assume full responsibility for how you choose to use it. For additional information, please see crop provisions, reference the crop insurance handbook or loss adjustment manual, or contact your crop insurance agent. This institution is an equal opportunity provider and employer.