A crop insurance option that provides coverage against an unexpected decrease in your operating margin.
Margin Protection Overview
Margin Protection (MP) is a crop insurance coverage option that provides you with coverage against an unexpected decrease in your operating margin caused by reduced county yields, reduced commodity prices, increased price of selected inputs, or any combination of these factors.
Margin Protection is area-based, using county level estimates of average revenue and input costs to establish the amount of coverage and indemnity payments.
How Margin Protection Works
- MP provides coverage that is based on an expected margin per acre for each applicable crop, type, and practice.
- MP is area-based coverage and may not necessarily reflect a producer’s individual experience.
- The Harvest Price Option allows you to choose to include replacement cost coverage to the Margin Protection policy. Similar to many popular revenue-based policies, if the harvest price is greater than the projected price, the expected margin and the trigger margin are recalculated based on the higher harvest price.
Determining the margin
When determining the margin, two types of inputs are considered: those subject to price changes as listed below, and those not subject to price change (i.e. fixed from planting to harvest). Inputs subject to price change include the following:
- Corn: Diesel, Urea, Diammonium Phosphate (DAP), Interest
- Soybeans: Diesel, DAP, Interest
- Rice: Diesel, Urea, DAP, Interest
- Wheat: Diesel, Urea, Monoammonium Phosphate (MAP), Interest
Margin Protection Availability
Margin Protection is available in select counties for corn, rice, soybeans, and spring wheat in the states shown, in select counties:
| Corn | IL, IN, IA, KS, MI, MN, MO, NE , ND, OH, SD, WI |
|---|---|
| Soybeans | AL, AR, CO, DE, FL, GA, IL, IN, IA, KS, KY, LA, MD, MI, MN, MS, MO, MT, NE, NJ, NY, NC, ND, OH, OK, PA, SC, SD, TN, TX, VT, VA, WV, WI |
| Rice | AR, CA, LA, MS, MO, TX |
| Wheat | MN, MT, ND, SD |
What Are The Benefits?
PERSONALIZED PROTECTION
Select the amount of protection your operation needs.
PRICE DISCOVERY
Utilize a price discovery period that differs from other MPCI products.
HARVEST PRICE
Choose the Margin Protection Harvest Price Option (MP-HPO) to include replacement cost coverage.
AREA-BASED PLAN
Gain area-based coverage at a high level while maintaining individual-based coverage by adding an RP or YP base policy to your MP.