MPCI

What Is MPCI? What Are Its Benefits?

Multiple Peril Crop Insurance provides comprehensive protection against weather related causes of loss and certain other unavoidable perils. The coarse grain provisions include corn, grain sorghum, and soybeans.

Coverage levels are available from 50 to 75% in increments of 5% (80 and 85% coverage levels available in limited areas) of the Actual Production History (APH) up to 100% of the price election. Coverage is expressed as a bushel guarantee (APH yield times the coverage level) and may be adjusted for excessive moisture and 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, multiplied by the selected level of coverage and insured acreage.

Production to Count

The actual production plus any yield appraisals less any adjustments for excess moisture or poor quality.

Loss Payment

The loss payment is calculated by subtracting the 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), by irrigated or dry land practices, and by acreage grown under an organic farming practice. In AR, LA, and MS, units are only available by FSN. To qualify, a producer must have individual records for each unit and the planting pattern between the units must have a discernible break.
• Cotton growers may also choose a county crop enterprise unit at a reduced premium in all MPCI counties in AL, AZ, AR, CA, FL, GA, KS, LA, MS, MO, NM, NC, OK, SC, TN, TX, and VA.

How It Works (corn illustration)

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

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

Production Loss 6,500 Bu.

Loss Payment (indemnity) 6,500 Bu. × $2.20 price election= $14,300

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 harvested production cannot be determined.

Benefits

• Confidence for pre-harvest crop sales
• Stability for long term business plans
• Improved risk and financial management
• Cash flow safety net
• Loan collateral
• U.S.D.A. shares in premium costs

Availability

MPCI is also available for over 50 crops nationwide in most commercial areas.

Learn More

For more information about Crop-Hail Coverage, contact us or visit www.rainhail.com