What is RA?
Revenue Assurance (RA) is a multi-peril crop insurance product that is based on Board of Trade prices and protects against loss of revenue caused by low prices, low yields, or a combination of both. RA has the harvest price option available, which uses the greater of the fall harvest price (generated at harvest time) or the projected harvest price (generated in the spring) to determine the per-acre revenue guarantee.
What are the benefits of RA?
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Provides a flexible and efficient management tool to crop producers.
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Provides collateral for loans.
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Harvest Price Option has unlimited upside protection, which is a great tool for forward contracting grain.
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Available in unit structures of basic, optional, enterprise, and whole farm.
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Provides discounts for producers that insure multiple crops on whole farm units.
How does it work?
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Establishes a minimum guarantee of revenue per acre.
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May select with or without Harvest Price Option.
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If revenue to count is less than final revenue guarantee, an indemnity is paid.
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Coverage levels range from 50% - 85%.
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