Risk Management Association (RMA) created a new Common Crop Insurance Policy beginning with the 2011 Crop Year, known as the COMBO Policy, to merge the APH, CRC, RA, IP & IIP plans into a single insurance plan. The new COMBO Policy will simplify the insurance process, and promote a better understanding of the options available for producers. RMA also developed a single rating and pricing component, which will keep insurance coverage and cost most consistent.
The chart below shows how the 2010 Policy will convert to the 2011 Common Crop Insurance Policy.
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2011 COMMON CROP INSURANCE POLICY CONVERSION CHART
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2010 POLICY
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2011 CROP YEAR POLICY CONVERSION
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Crop Revenue Coverage (CRC)
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Revenue Protection
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Revenue Assurance (RA)
with Fall Harvest Price Option
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Revenue Protection
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Revenue Assurance (RA)
without Fall Harvest Price Option
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Revenue Protection with
Harvest Price Exclusion
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Actual Production History (APH)
(CAT Endorsement)
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Yield Protection
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Income Protection (IP) /
Indexed Income Protection (IIP)
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Revenue Protection with
Harvest Price Exclusion
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CAT Income Protection (IP) /
Indexed Income Protection (IIP)
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Revenue Protection with
Harvest Price Exclusion (50/100)
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History of Crop Insurance
Because of the inherent risks and potential for widespread catastrophic losses associated with agricultural production, insuring farmers and ranchers has always posed a challenge.
In 1980, Congress passed legislation that was designed to increase participation in the Federal crop insurance program and make it more affordable and accessible. This modern era of crop insurance was marked by the introduction of a public-private partnership between the U.S. government and private insurance companies. Bringing the efficiencies of a private sector delivery system together with the regulatory and financial support of the Federal government formed the basis of a new and innovative approach to solving a long-standing problem.
The Federal Crop Insurance Reform Act of 1994 dramatically restructured the program. And in 1996, the Risk Management Agency (RMA) was created in the U.S. Department of Agriculture to administer the Federal crop insurance program. Through subsidies built into the new program guidelines, participation increased dramatically. By 1998, more than 180 million acres of farmland were insured under the program, representing a three-fold increase over 1988. In 2008, more than 272 million acres are insured through the program protecting a record-setting 90 billion dollars of crop value.