What Is MPCI? What Are Its Benefits?
Multiple Peril Crop Insurance provides comprehensive protection against weather related causes of loss and certain other unavoidable perils. The coarse grain provisions include corn, grain sorghum, and soybeans.
Coverage levels are available from 50 to 75% in increments of 5% (80 and 85% coverage levels available in limited areas) of the Actual Production History (APH) up to 100% of the price election. Coverage is expressed as a bushel guarantee (APH yield times the coverage level) and may be adjusted for excessive moisture and quality deficiencies. Minimum coverage (CAT) is available at 50% of the APH and 55% of the price election (50/55). MPCI provides late planting, prevented planting, and replanting protection. (See the prevented planting brief for additional information on prevented planting).
The guarantee is the historical yield, multiplied by the selected level of coverage and insured acreage.
Production to Count
The actual production plus any yield appraisals less any adjustments for excess moisture or poor quality.
The loss payment is calculated by subtracting the production to count from the yield guarantee and multiplying the result by the MPCI price election and ownership share.
How It Works (corn illustration)
Bushel Guarantee 120 Bu./A. × 75% × 100 A.= 9,000 Bu.
Production to Count 25 Bu./A × 100 A.= 2,500 Bu.
Production Loss 6,500 Bu.
Loss Payment (indemnity) 6,500 Bu. × $2.20 price election= $14,300
Reporting Changes or Crop Damage
Producers should notify their crop insurance agent or company immediately to get specific instructions if any of the following occurs:
MPCI is also available for over 50 crops nationwide in most commercial areas.