Crop Insurance – MPCI and PRF

CIH offers insurance protection for your crop business against unexpected drops in yields and lack of rainfall. Our consultative approach to crop insurance means we work closely with you to find the right coverage to insulate you from volatility, uncertainty and margin compression.

Multi Peril Crop Insurance (MPCI)
MPCI policies are crop insurance plans managed by the Federal Crop Insurance Corporation (FCIC) and USDA Risk Management Agency (RMA). They are administered by Approved Insurance Providers (AIPs) and have federally subsidized premiums for farmers and ranchers. Coverage options are the same across AIPs, including pricing.

Multi-peril covers yield losses from natural causes: excess precipitation, drought, insect damage, plant disease, hail, wind, flooding, frost, wildlife, tornado and fire. Losses can be caused by one or any combination to qualify. It also protects from lower prices.

Pasture, Rangeland, and Forage Insurance (PRF)
PRF Insurance is a subsidized insurance plan designed to offset the cost of rising feed expenses due to lack of precipitation. The policy is area based and measures deviation from annual rainfall. We also use historical rainfall patterns to help optimize coverage windows.

CONTACT CROP INSURANCE TEAM
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Multi Peril Crop Insurance (MPCI)

Coverage Options

  • Revenue Protection (RP) – coverage for individual revenue per acre based on individual price and yield

  • Yield Protection (YP) – coverage for individual yield only

Subsidized Premiums

  • Premium cost subsidized from 41% - 80%...

  • Recent subsidy increases on baseline policy and endorsements

  • Government subsidy reduces producer premium costs

Area Based Policy Endorsements

  • Enhanced Coverage Option (ECO) – Area Revenue protection from 95% - 86% or 90% - 86%

  • Supplemental Coverage Option (SCO) – Area Revenue protection 86% to underlying policy (Will start at 90% in 2027 CY)

  • Margin Coverage Option (MCO) – Margin protection from 95 - 86%

Customizable Policy by County

  • Producers select:

    • Coverage levels: 85% - CAT
    • Unit structure
    • Endorsements
    • Private products

Settlement

  • Underlying Policies - after known harvest and production

  • Area Based - after known production reporting and county yields the following summer

CIH Tools

  • Analyze policies based on historical price and yield data

  • Estimate potential indemnities throughout the growing season

  • Integrated with your personalized risk management platform for full risk management view

  • Optimize with exchange traded instruments

  • Weekly review of policy in relation to market

How Does Crop Insurance Work?

  • Multiple peril crop insurance (MPCI) is an insurance product federally regulated and subsidized by the federal government and sold through private crop insurance agents.

  • MPCI policies cover crop losses and lower yields due to natural causes.

  • Common causes: excess precipitation, drought, insect damage, plant disease, hail, wind, flooding, frost, wildlife, tornado and fire.

  • Losses can be caused by one or any combination to qualify.

CONTACT CROP INSURANCE TEAM

When is MPCI offered?

  • MPCI is offered for spring planted crops with a sales close date of March 15th and a sales close date of Sept 30th for fall planted crops.

  • CIH actively monitors and reviews policies and endorsements as part of an overall risk management strategy.

CONTACT CROP INSURANCE TEAM

How does MPCI settle?

  • Underlying policies are settled after harvest and production is known.

  • Area based endorsements are settled after production reporting and county yields are known the following summer.

The CIH Advantage: Integrated Crop Risk Solutions

CIH considers MPCI a risk management tool to use alongside a broader risk strategy. Using our data and analysis tools, we help integrate MPCI Insurance into your overall risk management plan. We do a lot more than just offer crop insurance — our Crop Insurance Team helps you find the right strategy to protect your interests.

  • Tailored online platform and mobile app for quick access

  • Historical data for informed decision making

  • Collective risk management toolbox in one spot

  • Ongoing risk management consulting for market based adjustments and opportunities

  • Access to margin analysis tools and real-time risk dashboards

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Market information offered by Commodity & Ingredient Hedging, LLC, a commodity trading advisor registered with the CFTC and a Member of NFA. Insurance services provided by CIH Insurance Services, LLC. The information contained in this publication is taken from sources believed to be reliable, but is not guaranteed by Commodity & Ingredient Hedging, LLC, nor any affiliates, as to accuracy or completeness, and is intended for purposes of information and education only. Nothing therein should be considered as a trading recommendation by Commodity & Ingredient Hedging, LLC. There is a risk of loss in futures and option trading. Past performance is not indicative of future results.

Issuance of insurance coverage is subject to underwriting review and approval. Coverage not available in all states. Please see the policy for the full terms, conditions and exclusions. CIH Insurance Services, LLC is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Coverage scenarios are hypothetical and shown for illustrative purposes only. Coverage is dependent on the actual facts and circumstances giving rise to a claim. CIH is an equal opportunity employer and provider.© CIH. All rights reserved.

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