Area Risk Protection Insurance
Area Risk Protection Insurance (ARPI) is an insurance plan that provides coverage based on the experience of an entire area, generally a county. ARPI replaces the Group Risk Plan (GRP) and the Group Risk Income Protection Plan (GRIP).
ARPI provides protection against widespread loss of revenue or widespread loss of yield in a county. Individual farm revenues and yields are not considered under ARPI and it is possible that your individual farm may experience reduced revenue or reduced yield and not receive an indemnity under ARPI.
ARPI provides protection against widespread loss of revenue or widespread loss of yield in a county. Individual farm revenues and yields are not considered under ARPI and it is possible that your individual farm may experience reduced revenue or reduced yield and not receive an indemnity under ARPI.
Area Yield Protection (AYP) indemnifies the insured in the event the final county yield falls below the insured’s trigger yield. The Federal Crop Insurance Corporation (FCIC) will issue the final county yield in the calendar year following the crop year insured. Since this plan is based on county yields and not individual yields, the insured may have a low yield on the farm and not receive payment under AYP.
Area Revenue Protection (ARP) protects against a loss of revenue due to a county-level production loss, a price decline, or a combination of both. Upside harvest price is included which increases the policy protection at the end of the insurance period if the harvest price is greater than the projected price and if there is a production loss.
Area Revenue Protection with Harvest Price Exclusion(ARP-HPE) functions in the same way as ARP, but only uses the projected price and does not provide upside harvest price protection.
