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Multiple Peril Crop Insurance (MPCI)
Multiple Peril Crop
Insurance (MPCI) provides comprehensive protection against weather-related
causes of loss and certain other unavoidable perils. Coverage is available on
over 76 crops in primary production areas throughout the U.S. at 50 to 75
percent (up to 85 percent in certain counties) of the actual production history
(APH) for the farm. An indemnity price election from 60 to 100 percent of the
Federal Crop Insurance Corporation expected market price is selected at the time
of purchase.
MPCI coverage provides protection
against low yields, poor quality, late planting, replanting costs and prevented
planting (coverages vary based upon geographic location and crop - always read
your policy language to determine the coverage for your specific
crops)
Units
A unit is defined as that
acreage of the insured crop in the county which is taken into consideration when
determining the guarantee, premium, and the amount of any indemnity (loss
payment) for that acreage. The basic insurance unit is all insurable acreage of
the insured crop in the county on the date coverage begins for the crop year in
which the producer has a 100 percent share or which is owned by one entity and
operated by another specific entity on a share basis. Basic units may be further
divided into optional units. Optional units are determined by section, section
equivalents, FSA Farm Serial Number, noncontiguous land (for certain perennial
crops) and irrigated and non-irrigated practices. When the policy allows,
optional units may be established, provided the crop is planted in a manner that
results in a clear and discernible break in the planting pattern at the
boundaries of each optional unit, and the producer keeps separate identifiable
records of planted acreage and harvested production foreach optional
unit.
Contract Changes
MPCI is a continuous
policy and will remain in effect for each crop year following the acceptance of
the original application. Producers may cancel the policy, a crop, a county, or
a specific crop in a specific county, after the first effective crop year, by
providing written notice to the insurance provider on or before the cancellation
date shown in the applicable crop provisions. Producers must request policy
changes from their insurance provider on or before the sales closing date for a
change of price election or coverage level. In addition, requests to increase
the maximum eligible prevented planting acreage above the limitations contained
in the crop policy must be made by the sales closing date for the applicable
crop. Contract changes involving a successor-in-interest application and
corrections of a producer's name, address, identification number, administrator,
etc. may be made at any time.
Reporting of Acreage and Crop Damage
Each crop year the producer is required to submit an
acreage report by unit for each insured crop. The acreage report must be signed
and submitted by the producer on or before the acreage reporting date contained
in the Special Provisions for the county for the insured crop. In the event of
crop damage, producers should immediately notify their insurance provider of the
damage.
Crop Availability
Crops covered by MPCI
are as follows: almonds, apples, beans (canning and processing) canola, citrus,
citrus trees, corn, grain sorghum, soybeans, upland cotton, extra long staple
cotton, cranberries, dry beans, figs, Florida fruit trees, millet, nursery,
peaches, peanuts, pears, peas, peppers, plums, popcorn, potatoes, prunes,
raisins, rice, safflower, wheat, barley, oats, rye, flax, stone fruit, sugar
beets, sugarcane, sunflower seeds, sweet corn (canning and freezing, and fresh
market) tobacco, tomatoes (canning and processing), tomatoes (fresh market and
walnuts).
MPCI Benefits
MPCI benefits include
cash-flow protection, good loan collateral, added confidence when developing
crop marketing plans, stability for long-term business plans and family
security. The Government shares in the premium costs.
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