What does the amount of insurance protection under the revenue protection plan (RP) depend on?

The amount of insurance protection under the revenue protection plan (RP) is based on both the projected price and the harvest price, ultimately reflecting whichever is greater. This is designed to provide a safety net for producers against fluctuations in commodity prices throughout the growing season.

The projected price is determined at the beginning of the crop year based on market forecasts, while the harvest price is established at the time of harvest and is reflective of the current market conditions. By using the greater of these two prices, the revenue protection plan ensures that producers are better safeguarded against downward trends in average prices and can benefit from increases in prices during the harvest period. This method offers a more comprehensive level of protection, enabling farmers to manage their risk more effectively in volatile market environments.