Margin Protection is a new policy for the 2018 crop year and beyond. It is an area plan that covers gross profit margin in lieu of gross revenue like most other insurance policies. Coverage levels are available up to 95%, and Margin Protection can be a great way to add increased, subsidized coverage to your operation. A few things to keep in mind:
- Margin Protection coverage is an area plan and will not cover you for individual farm losses. Market Value, Estimated Yield, Estimated Inputs, Final Yield, Final Inputs, etc are all set on a per crop, per county basis by RMA.
- Margin Protection claims can be generated by loss of bushels, loss of commodity market value OR unexpected increase in input costs
- Margin Protection can be purchased by itself OR with an underlying MPCI policy (great if you are worried about individual farm losses)
The deadline to sign up for this policy is 9/30