Coverages
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MPCI for Small Grains—Wheat, Barley, Rye, and Flax
Multiple Peril Crop Insurance provides comprehensive protection against weather related causes of loss and certain other unavoidable perils. Coverage levels are available from 50 to 75% (80 and 85% levels available in limited areas) in increments of 5% of the Actual Production History (APH) up to 100% of the price election. Coverage is expressed as a yield guarantee (APH yield times the coverage level) and may be adjusted for quality deficiencies. Minimum coverage (CAT) is available at 50% of the APH and 55% of the price election (50/55). MPCI provides late planting, prevented planting, and replanting protection. (See the prevented planting brief for additional information on prevented planting).
Yield Guarantee
The guarantee is the historical yield (APH), times the level of coverage, times the insured acreage.
Production to Count
The actual production plus any yield appraisals less any adjustments for poor quality results in the production to count for the insurance unit.
Loss Payment
The loss payment is calculated by subtracting the net amount of production to count from the yield guarantee and multiplying the result by the MPCI price election and ownership share.
Units
The basic insurance unit is all the acreage of the crop in the county in which the policyholder has 100% ownership or shares with the same person. Most basic insurance units can be further divided into optional units. Optional units may be divided by sections or section equivalents (in areas without sections or section equivalents, separate farm serial numbers (FSN) may be used), and by irrigated or non-irrigated practices. In AR, LA, and MS, units are only available by FSN. To qualify, a producer must have individual all records for each unit and the planting pattern between the units must have a discernible break.
How It Works (corn illustration)
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| Bushel Guarantee | 100 Bu./A. × 75% × 100 A.= | 7,500 Bu. |
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| Production to Count | 60 Bu./A × 100 A.= | 6,000
Bu. |
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| Production Loss | |
1,500
Bu. |
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| Loss Payment (indemnity) | 1,500 Bu. × $2.05 price election= |
$3,075 |
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Reporting Changes or Crop Damage
Producers should notify their crop insurance agent or company immediately to get specific instructions if any of the following occurs:
- If the producer wants to make a change in the amount of protection,
- If there is a change in the farm operation (entity, crops, county, etc.), or
- If the crop is damaged or the producer plans to utilize production in such a way that the harvested production cannot be determined.
Benefits
- Covers variable crop input costs.
- Confidence for pre-harvest crop sales.
- Improved risk and financial management.
- Cash flow safety net.
- Loan collateral.
- U.S. D.A. shares in premium costs.
Availability
Crops covered under MPCI are: almonds, apples, avocados, beans (canning and processing), beans (fresh market), blueberries, cabbage, canola, cherries, chile peppers, citrus, citrus trees, coarse grains (corn, grain sorghum, soybeans), cotton, cotton-extra long staple, cranberries, cucumbers, cultivated clams, cultivated wild rice, dry beans, figs, Florida avocados, Florida fruit tree, forage production, forage seeding, grapes, grapes (table), hybrid seed corn, hybrid sorghum seed, macadamia nuts, macadamia trees, millet, mint, mustard, nursery, onions, peaches, peanuts, pears, peas (dry), peas (green), pecans, peppers, plums, popcorn, potatoes, prunes, raisins, rice, safflower, silage sorghum, small grains (wheat, barley, oats, rye, flax), stonefruit (fresh and processing apricots, fresh and processing freestone peaches, fresh nectarines, and processing cling peaches), strawberries, sugar beets, sugarcane, sunflower seeds, sweet corn (canning and freezing), sweet corn (fresh market), sweet potatoes, tobacco, tomatoes (canning and processing), tomatoes (fresh market), walnuts, and winter squash. MPCI is available in most commercial areas.
03/23/01 -- 11/04
