The Revenue Protection (RP) plan provides protection against a loss of revenue caused by price increase or decrease, loss of production, or a combination of both. 

 

The revenue protection plan uses the Commodity Exchange Price Provisions (CEPP) to establish the pricing, however, it uses two different price discovery periods: » The projected price – price available at the time the insured purchases insurance » The harvest price – released closer to harvest time

 

To set up the policy and calculate the premium due, the guarantee is initially calculated using the projected price since that is the only price available at the time insurance attaches.

 

If a loss is sustained and the harvest price is:

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• HIGHER than the projected price, the guarantee will be recalculated using the higher harvest price.

 

• LESS than the projected price, the guarantee is not recalculated.

 

It will stay at the initially calculated amount using the projected price.