Yield Protection
Yield Protection (YP) policies provide protection against a loss in production below the predetermined guarantee. Producers may select from a variety of coverage levels to personalize their policy. The insurance yield is based on a policyholder’s actual production history, which is the average yield obtained on the insured unit for four to ten consecutive years. If the average yield per acre is less than the yield guarantee, an indemnity is paid.
The projected price is determined in accordance with the Commodity Exchange Price Provisions and is based on daily settlement prices for certain futures contract. The producer selects the percent of the projected price he or she wants to insure, between 55% and 100%.