Why RA?
Similar to CRC, a Revenue Assurance (RA) policy allows you to receive an indemnity payment when your gross revenue is below your revenue guarantee. The Revenue Assurance policy allows you to select a harvest price option with more unit structure alternatives available. Your agent can help you evaluate the best policy for your operation.
Overview
Guarantees revenue per acre, with comprehensive protection against weather-related losses and certain other unavoidable perils, including low crop prices.
Protects against low prices, low yields, poor quality, late planting,1 replanting costs2 or when planting is prevented.
Available for basic, optional, enterprise or whole farm units.
Harvest Price Option, if selected, allows for the revenue guarantee to be based on the higher of harvest prices or pre-planting estimated prices, offering added protection if prices go up at harvest.
Benefits
Bottom-line revenue guarantees for more security in marketing.
Harvest Price Option can be used to offset effects of high harvest prices on insurance guarantee and marketing.
Provides income guarantee for bank loans.
Prices are set using regional commodity exchanges to more closely reflect price differences.
Loss Triggers
The basic RA policy pays when actual revenue is less than revenue guarantees; high harvest prices may result in lower indemnity payments. With the addition of the Harvest Price Option, the greater of the harvest price or the projected price is used to calculate your guarantee.
RA Example
Situation: Harvest price is above projected price.3 Revenue Guarantee:
(APH (180 bu.) x Level (.65) x Projected Price ($2.23) = $260.91/Acre Final Revenue Guarantee:
(APH (180 bu.) x Level (.65) x Harvest Price ($2.80) = $327.60/Acre Harvest Price: $2.80 Yield: 90 bu./Acre
RA with Harvest Price Option (HPO) Your Indemnity Payment:
Final Revenue Guarantee ($327.60) – Harvest Revenue ($252.00) = $75.60/Acre
RA without Harvest Price Option (HPO) Your Indemnity Payment: Revenue Guarantee ($260.91/Acre) – Harvest Revenue ($252.00/Acre) = $8.91/Acre
1Subject to crop policy provisions. 2Not available on all crop policies. 3All examples assume the policyholder has 100% share of the insured crop.
John Deere Risk Protection, Inc. (dba JDRP Crop Insurance Services in California) is the crop insurance Managing General Agent for The Insurance Company of the State of Pennsylvania, a subsidiary of American International Group, Inc., Westfield Insurance Company and Westfield National Insurance Company. Products are not available in all states. Product descriptions are for illustrative purposes only. See your authorized John Deere crop insurance agent for details. John Deere Risk Protection, The Insurance Company of the State of Pennsylvania, Westfield Insurance Company, and Westfield National Insurance Company are equal opportunity providers.
