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Revenue Assurance (RA) is one of the fastest growing Federal Crop Insurance programs. RA could be split into two different programs, with Harvest Price Option (HPO) or without
Harvest Price Option. RA with HPO works very similar to Crop Revenue Coverage even using the same fall and spring pricing periods. For an example of how RA works, please look at the CRC and RA examples.
RA without HPO uses the same spring pricing period, but the revenue guarantee is locked even if the fall price is higher. The spring price is multiplied times the proven yield
and the coverage level to determine the revenue per acre.
In the fall the price is again calculated, if it is lower than the spring price the bushel per acre trigger is higher. However, if the price is higher, the bushel per acre trigger will be lower than the APH times the Coverage level.
- RA with HPO offers the benefit of no limit of spring to fall price moves as Crop Revenue Coverage.
- RA with HPO is the best program to cover the yield risk associated with a marketing plan that uses forward Contracting.
- RA provides some pricing advantages over CRC and APH in certain situations, and can provide better coverage for the same investment.
- If you carried CRC or an APH policy last year, please contact Midwest Ag Insurance and find out how to maximize your crop insurance investment.
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