WV Small Farm Center

Corn Crop Insurance

Who is insurable?

Coverage for corn is available in all counties of West Virginia. In 2010, West Virginia has 30 percent of corn crops covered under APH (Actual Production History); another 28% were covered under CRC (Crop Revenue Coverage).

What is insured?

The crop insured will be all corn grown in the county on insurable acreage, for which premium rates are provided either as for grain or silage, in which you have a share. Corn for grain or silage may be covered with yield protection or revenue protection. RMA will set the silage harvest price equal to the projected price.

Causes of Loss
  • Adverse weather conditions, including hail, frost, freeze, drought, and excess precipitation
  • Failure of irrigation water supply
  • Fire
  • Insects
  • Plant disease
  • Wildlife
Terms to Understand
  • Yield Protection Plan provides protection against production losses.
  • Revenue Protection Plan provides protection against loss of revenue due to a production loss, price decline or increase, or a combination of both.
  • Revenue Protection with Harvest Price Exclusion Plan provides protection against loss. Revenue caused by price decrease, low yield or a combination of both based on the projected price only.
  • Optional Unit: If a basic unit consists of two or more FSA farm serial numbers and certain record keeping requirements are met, you may qualify for optional units.
  • Enterprise Unit: Generally, consists of all the insured acreage of the crop in a county.
  • Whole Farm Unit: Generally, consists of all the insured crops in the county that are covered by the insurance plan. Does not apply to Yield Protection Plan.

What are the next steps?
The sales closing date for Corn Crop Insurance is March 15. Insurance coverage begins on the later of the date the RMA accepts your application or the date when the crop is planted, and will end at the earliest of: (1) total destruction of the crop; (2) harvest of the unit; (3) final adjustment of a loss; (4) abandonment of the crop or (5) October 20 for silage and December 10 for grain.

Coverage Levels and Premium Subsidies The premium subsidy percentages and available coverage levels are shown below. Your share of the premium will be 100 percent minus the subsidy amount.

Percent Premium Subsidy & Coverage Levels

Catastrophic coverage (CAT) is available at 50 percent of your APH yield and 55 percent of the price election. The total cost for CAT coverage will be an administrative fee of $300 per crop per county, regardless of the number of acres. For coverage levels above CAT, the administrative fee is $30 per crop per county in addition to the premium cost.

Price Elections Prices for corn are based on futures market prices. Projected prices are generally available 15 days prior to the sales closing date (sales closing date is March 15). The harvest price is generally available at the end of the month when most of the crop is harvested.

Consult your agent for more information.

What is a loss? Under yield protection a loss occurs when the bushels of corn produced for the unit fall below the production guarantee as a result of damage from a covered cause of loss. Under revenue protection a loss occurs when the value of production to count is less than the revenue protection guarantee due to a production loss and/ or a loss of revenue.

Value of production to count < the revenue protection guarantee
Loss= Value of Insurance Guarantee – (minus) Value of production to count

Loss Example: 90 bushels/acre with APH (Actual Production History) yield, a 75 percent coverage level, $5.29 projected price (Yield Protection), $4.49 harvest price (Revenue Protection), and 40 bushels produced.

Yield vs. Revenue Protection