Yield Protection
Yield Protection Plan makes up of less than 5% of row crops insured – most producers in our area choose Revenue Protection (RP). However, this plan can have its place in a risk management plan, as the premium is lower than the Revenue Protection plan.
This program protects a minimum of 4 year’s crop history, the Actual Production History (APH), and protects a maximum of 10 years APH. The Yield Protection Plan provides coverage for loss of production below a predetermined production guarantee. Loss of production must be caused by unavoidable, naturally occurring causes of loss (drought, too much rain, plant diseases, insects, wildlife).
Production losses will be paid based on the Projected Price (that’s the price that USDA sets before you even plant the crop).
The following crops are covered by this policy:
Barley
Canola
Corn
Cotton
Grain Sorghum
Rice
Soybeans
Sunflowers
Wheat
The Insured can choose the following items:
1. Coverage levels – 50% - 85%
The insured may elect coverage levels from 50% - 75% of the approved APH yield in 5% increments. In many counties, the insured may also elect 80 or 85% of the approved APH yield.
2. Price Elections (I always recommend 100% election)
The insured may elect a percentage of the projected price based on the level of coverage selected. I’ve never seen anyone take less than 100% of the price election, but you certainly do have that option, if you are looking to lower your premium.
3. Unit Structure
Basic Units
Optional Units - most expensive but also seems to be more likely to pay a claim (this is not a guarantee that you will be paid, just a professional opinion based on observations from past crop years)
Enterprise units
An Indemnity (or claim payment paid to you if you have a loss) calculation may look like the following… however, please note that there are so many different options and other factors on each individual’s policy, that this is just a guideline. Don’t take this as set in stone, but it is just to give you an idea of how this plan may pay out, possibly, if you qualify for a claim/indemnity payment.
Step 1: APH x Coverage Level % = Bushel Guarantee. (This would, in theory, be the bushels you are guaranteed to make, or else you get a payment)
Step 2: Bushel Guarantee - Total you actually harvested = Lost bushels
Step 3: Lost Bushels x Projected Price = Indemnity payment per acre
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 get the most up to date information, at https://www.rma.usda.gov/about-crop-insurance/fact-sheets
Updated 5/14/2025
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.