Last Updated: 10/25/2016

Margin Protection (MP) is a new crop insurance coverage option that provides producers with coverage against an unexpected decrease in their operating margin. The plan provides coverage that is based on an expected margin, which is the expected area revenue minus the expected area operating costs, for each applicable crop, type and practice. MP is area-based coverage and may not necessarily reflect a producer’s individual experience.

The price discovery periods for MP corn, soybeans and wheat begins August 15th. After that date daily prices will be shown at “Price Discovery.” These prices are used to develop the Margin projected price and Projected input prices for MP. Estimates of the Expected Margins and Premiums will be shown daily based upon the projected prices during price discovery.

The first price discovery period for rice begins December 15th. Rice will show estimates until rice price discovery begins. These estimates before price discovery are based on the previous month of prices.

MP is offered either as a stand-alone policy (as quoted above using current market data and simulations) or in conjunction with an individual buy up base policy. If a grower chooses to purchase both MP and a Yield Protection or Revenue Protection policy (plan codes 01, 02, 03), the premium for MP will be reduced. The amount of the reduction cannot be known definitively until all information needed to establish liability under the base policy is known. The premium displayed is the maximum amount of premium per acre that could be owed for MP given the estimated market values and assuming no individual policy is purchased.

Notice: For the Margin Protection commodities corn, soybeans, and wheat, with projected price discovery periods of August 15, 2016 – September 14, 2016 MAP/DAP, and Urea prices used in the computation of projected margins were unable to be obtained as a result of no trading activity for the May 2017 contracts on the Freight Investor Services data source indicated in the MPP. In accordance with Section 2(f) of the Margin Protection policy provisions, if one or more projected input prices cannot be determined, the margin projected price and the margin harvest price for that input will be set to zero for the crop year. Thus, projected and harvest Margin Protection urea and DAP/MAP prices for the 2017 crop year for corn, soybeans, and wheat will both be set to zero, and receive zero volatility for those components. The remaining components of expected and final costs will be determined and published as per the MPP.

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