Advantages
Protects against a decline in ________ , not just a drop in yield and/or futures price.
Margin
These plans cannot be purchased for the crop if the insured has Margin Protection
ECO / SCO / ARPI
_________ - _________ = Margin
Revenue - Costs
Dollar value that the Harvest Margin must be lower than to have a claim.
Expected Margin - Margin Deductible = _______
Trigger Margin
Discovery period for the Margin Protection projected price.
August 15th to September 15th ( Another option than the Feb. discovery period for your standard RP policy)
_____________ farm revenues and input costs are not considered.
Individual
Area based coverage from __% to ___%
70% to 95%
_____ = Expected County Revenue - Expected Cost
Expected Margin
Consulting firm that developed Margin Protection
Watts & Associates
406-252-7776
Alex Offerdahl - aofferdahl@wattsandassociates.com
Eric Henry -ehenry@wattsandassociates.com
The subsidy factors that range from __% to __ %
44% to 59%
When the final Margin Protection indemnity is known
Mid June - when RMA releases county yields. 6+ months after harvest
Protection factor range.
80% to 120% in 1% increments
Expected Revenue x (1- Converge Level) = _____
Margin Deductible
Sales tool to calculate indemnities
Indemnity worksheet/matrix
Indemnity estimator
Will be given if the insured elects a base (RP/YP) policy.
Premium Credit
Additional premium will be charged along with what?
Administrative fee
Potential margin losses could be associated with.
Reduced county yields
Decline in commodity futures prices
increased costs of inputs
Or any combination of these
Harvest Yield x Harvest Price) - Harvest Cost=______
Harvest Margin
Website for county yields/price/margin/revenue but no variable input costs
RMA acutarial information browser (AIB)
IF the margin harvest is greater than the margin projected price the expected revenue may increase with that coverage option.
MP-HPO
Margin Protection - Harvest Price Option
2022- 96% of policies included HPO
The number of months separate the closing date to purchase Margin Protection and the date when the final indemnities are calculated and paid.
Twenty-one months
September 30th 2023 - July 16th 2025
Variable input costs.
Diesel Fuel
Interest Rates
DAP- Phosphorus
Potash - Potassium
Urea - Nitrogen (N/A Soybeans)
Trigger Margin - Harvest Margin= ____x__
X * Protection Factor =_________
x=Margin Loss ; Indemnity
Contains the definitions of the commodity price and of the commodity input information specific to the crop.
Margin Price Provisions