Revenue Net Crop Insurance
Protect Your 2015 Crop Prices with Revenue Net
With market volatility so prevalant, adding AgStar's Revenue Net crop insurance to your risk management plan helps ease the uncertainty of input costs, market prices and ensures a profitable position in your operation.
Revenue Net is a crop insurance add-on product for producers that carry revenue protection on a Federal Common Crop Insurance Policy (CCIP) for corn or soybeans. No need to wait for the February average price with the Revenue Net policy. It allows you to lock in a higher base price with spring pricing in the fall - up to 5 months earlier than available on the Federal Crop Insurance revenue protection plan. The Federal Crop guarantee is based on the higher of the February projected price or the October harvest price.
The settlement prices use the average daily December futures for corn and the average November futures for soybeans. Pricing periods are every two weeks: 1st - 15th or 16th - end of the month. You can decide to utilize Revenue Net on the last day of the pricing period. If February's price is highest, that is the price you receive.
- Federal Common Crop Insurance with Revenue Protection coverage required.
- Revenue Net coverage levels must be same as Revenue Protection levels.
- Premiums due same time as multi-peril premiums.
- Not available on corn insured as silage or high risk land. Some other exclusions may apply.
How the Revenue Net Price is Determined
The following provides an example on determining the Revenue Net price.
- Calculate the Revenue Net settlement guarantee
52 bu X 80% x $9.50 (Revenue Net Settlement Price) x 100 acres = $39,520
- Calculate the Revenue Net Plan revenue guarantee
52 bu X 80% x $8.00 (Spring Price) x 100 acres = $33,280
- Calculate the Revenue Net Plan revenue to count harvest price
4,300 bu x $8.25 (Harvest Price) = $35,475
- Calculate the difference between #1 & the greater of #2 or #3
$39,520 - $35,475 = $4,045 loss for the unit for Revenue Net.
Find out more about Revenue Net Crop Insurance from your AgStar Specialist. Contact Us or call 1-866-577-1831. Find out more information on our other insurance offerings.