Crop and Livestock Income Protection, (CLIP), is a Federal crop insurance product that provides an umbrella-style revenue guarantee across two or more commodities, offering higher overall protection than insuring each crop individually. By combining multiple Revenue Protection (RP) policies into one unified coverage layer, producers benefit from premium savings tied to diversified risk—without changing how their underlying policies work.
CLIP Benefits
The CLIP program works best for operations looking to strengthen revenue stability across multiple crops or head of cattle while keeping reporting simple and utilizing the RP coverage you already know and trust.
Allows you to use one policy to stack coverage over several underlying RP policies to simplify risk management strategies.
Helps mitigate the financial impact of market fluctuations and revenue variability
Accommodates diversified farming operations with multiple income sources.
While CLIP can be a beneficial in the way it combines some of the benefits of both Revenue Protection and Whole Farm Revenue Protection, it is not the best fit for every operation, and its not available in every state. To see if CLIP will work in your risk management strategy, make sure to check with your agent.
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Crop and Livestock Income Protection, (CLIP), is a Federal crop insurance product that provides an umbrella-style revenue guarantee across two or more commodities, offering higher overall protection than insuring each crop individually. By combining multiple Revenue Protection (RP) policies into one unified coverage layer, producers benefit from premium savings tied to diversified risk—without changing how their underlying policies work.
CLIP Benefits
The CLIP program works best for operations looking to strengthen revenue stability across multiple crops or head of cattle while keeping reporting simple and utilizing the RP coverage you already know and trust.
While CLIP can be a beneficial in the way it combines some of the benefits of both Revenue Protection and Whole Farm Revenue Protection, it is not the best fit for every operation, and its not available in every state. To see if CLIP will work in your risk management strategy, make sure to check with your agent.
Have some questions on CLIP?
Allows you to use one policy to stack coverage over several underlying RP policies to simplify risk management strategies.
Helps mitigate the financial impact of market fluctuations and revenue variability
Accommodates diversified farming operations with multiple income sources.
How Does CLIP Work?
CLIP provides revenue-based protection designed for diversified operations generating income from crop, production, diversified crop production, and/or livestock production. Coverage is based on your operation’s expected income. When actual revenue falls below the insured level due to yield variability, price changes, or market conditions, an indemnity may be triggered. Rather than focusing on individual commodity losses, CLIP evaluates the broader income profile of your operation, helping stabilize overall farm revenue.
As a Federal product, CLIP is Federally subsidized. The subsidy received is dependent on the CLIP coverage level chosen. This chart from the RMA CLIP Fact Sheet shows the current subsidy rates for the CLIP program. In addition to the subsidized premium, there is a administrative fee applied for CLIP in each county, though it does not require a separate fee for each underlying RP policy. The actual premium amount is based on liability and included commodities.
CLIP is designed to seamlessly integrate with your existing RP policies. For a good understanding of the way CLIP combines your policies, take a look at the illustration on the right. This example producer has corn, soybean, and cotton policies. With CLIP, they are all able to be covered under one policy at a higher coverage rate in addition to their underlying policies.
As CLIP acts as a higher band for all the underlying RP products, there are several different scenarios for how your coverage may play out. For the following examples, we will assume the example grower has a even total of 33% revenue in corn, cotton, and oats.
From the RMA CLIP Fact Sheet
CLIP provides revenue-based protection designed for diversified operations generating income from crop, production, diversified crop production, and/or livestock production. Coverage is based on your operation’s expected income. When actual revenue falls below the insured level due to yield variability, price changes, or market conditions, an indemnity may be triggered. Rather than focusing on individual commodity losses, CLIP evaluates the broader income profile of your operation, helping stabilize overall farm revenue.
As a Federal product, CLIP is Federally subsidized. The subsidy received is dependent on the CLIP coverage level chosen. This chart from the RMA CLIP Fact Sheet shows the current subsidy rates for the CLIP program. In addition to the subsidized premium, there is a administrative fee applied for CLIP in each county, though it does not require a separate fee for each underlying RP policy. The actual premium amount is based on liability and included commodities.
From the RMA CLIP Fact Sheet
CLIP is designed to seamlessly integrate with your existing RP policies. For a good understanding of the way CLIP combines your policies, take a look at the illustration on the right. This example producer has corn, soybean, and cotton policies. With CLIP, they are all able to be covered under one policy at a higher coverage rate in addition to their underlying policies.
As CLIP acts as a higher band for all the underlying RP products, there are several different scenarios for how your coverage may play out. For the following examples, we will assume the example grower has a even total of 33% revenue in corn, cotton, and oats.
CLIP Scenarios
In a very rough year, you may have both CLIP and several of your underlying policies trigger, depending on your coverage choices. In this example, The grower had each underlying policy trigger aside from cotton, and the combined revenue of his covered crops was beneath his 85% trigger point for CLIP, meaning CLIP would also trigger.
If a year is not great, but not terrible, you may have CLIP trigger without any of the underlying RP policies triggering. In this case, all his crops were high enough above their trigger point that the underlying policies did not trigger. However, combined, the total revenue was still below the 85% coverage, causing CLIP to trigger.
In this example, all of the farmers crops were above their underlying RP policy trigger point, and combined were higher than the 85% trigger of CLIP. In a situation like this, no indemnity would be paid.
In this example, the growers corn and soybeans are above their coverage level. However, cotton does not do quite as well. In this scenario, it is possible for the grower to receive an indemnity for their cotton, but not receive an indemnity for CLIP, as the combined revenue is still above CLIPs 85% trigger point when you add in the indemnity from the underlying RP policy.
How Do CLIP Claims Work?
CLIP does follow the same policy loss adjustment procedures as its underlying RP policies. When working with a CLIP claim, it does not affect any timely claims settlements for your underlying RP policies. However, CLIP indemnities will not be determined until all of your production is reported, and all claim determinations have been finished for your underlying RP policies.
What Crops/Livestock/Commodity Are Eligible?
As of crop year 2026, the following crops are eligible for the CLIP program.
Which States are Eligible for the CLIP Program?
As of crop year 2026, the following states currently have access to CLIP. North Dakota, South Dakota, Nebraska, Colorado, Kansas, Oklahoma, Arkansas, Texas, Louisiana, Mississippi, Tennessee, Alabama, and Georgia. Just because a state has the CLIP program available, does not mean every county is offering it. Make sure to check with your crop insurance agent first.
Other CLIP Eligibility Requirements
The CLIP program requires that you have at least two underlying RP policies in force in the same county covering all insurable planted acreage or covered livestock that conform to the coverage limits of CLIP. Additionally, at least two of the underlying policies must make up 10% of the insurable liability of all your commodities insured under the CLIP program. Your CLIP policy must also be with the same AIP and agency as your underlying RP policies.
Please note that the sales closing date for CLIP is the earliest SCD from all your chosen underlying revenue protection policies. For example, if one of your underlying RP policies has a SCD of February 28, and the other is March 15, February 28 would be your sales closing date for CLIP.
In addition to the above rules, all of the following options are excluded from working with the CLIP program.
In addition to the above rules, all of the following options are excluded from working with the CLIP program.