Tarpon Blue Insurance Advisors, LLC offers a variety of insurance products such as Actual Production History (APH), Actual Revenue History (ARH), Area Risk Protection Insurance (ARPI), Commodity Exchange Price Provisions (CEPP), Contract Price Addendum (CPA), Dollar Plan (DOL), Livestock (LRP & LGM), Rainfall Index (RI), Revenue Protection (RP), Vegetation Index (VI), Whole-Farm Revenue Protection (WFRP), and Yield Protection (YP).
Learn more about these insurance products below.
Actual Production History (APH) policies insure producers against losses from natural causes including hail, wind, frost, insects, disease, drought, or excessive moisture. The producer can select the amount of average yield to insure (between 50-85%), as well as the percent of the predicted price (between 50-100% of the crop price).
If the harvest plus an appraised production is less than the yield insured, the producer will be paid an indemnity. The indemnity is based on multiplying the difference by the insured percentage of the price selected by the insured share.
The Actual Revenue History (ARH) plan is similar to the Actual Production History plan, but insures historical revenues instead of historical yields. The policy protects the grower against losses from low yields, low prices, low quality, or any combination of these events.
Area Risk Protection Insurance (ARPI) provides insurance coverage based on the experience of an entire area, generally a county.
The Commodity Exchange Price Provisions (CEPP) are used in conjunction with either the Common Crop Insurance Policy Basic Provisions or the Area Risk Protection Insurance Basic Provisions, along with the Crop Provisions for the following crops: barley, canola, corn, cotton, grain sorghum, rice, soybeans, sunflowers, and wheat. There are criteria for determining the crop-specific harvest price definitions and specifics including commodity exchanges, contracts, and discovery.
Contract Price Addendum (CPA) allows a producer who has a written contract from a buyer by the acreage reporting date, the ability to insure your crop at the contract price.
Dollar Plan (DOL) policies provide protection against declining value due to damage that causes a yield shortfall. The amount of insurance is based on the cost of growing a crow in a specified area. When a loss occurs, the annual crop value is less than the amount of insurance. The insured may select a percent of the maximum dollar amount equal to catastrophic level of coverage, or purchase additional coverage levels.
Livestock price insurance is available for swine, cattle, lambs, and milk. These policies are to insure against declining market prices of livestock – coverage is determined using future and options pricing from the Chicago Mercantile Exchange Group.
Livestock Risk Protection (LRP) provides coverage against market price decline if the ending price is less than the producer determined beginning price and indemnity is due. Livestock Gross Margin (LGM) provides coverage for the difference between commodity and feeding costs.
Rainfall Index (RI) is based on weather data collected and maintained by the National Oceanic and Atmospheric Administration Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area and timeframe, diving the country into six regions due to different weather patterns.
Revenue Protection (RP) policies insure producers against losses due to natural causes including hail, wind, frost, insects, disease, excessive moisture, and drought.
Revenue Protection with Harvest Price Exclusion policies insure producers in the same manner as Revenue Protection policies, except the amount of insurance protection is based on the protected price only – the amount of insurance protection is not increased if the harvest price is greater than the projected price.
Vegetation Index (VI) is based on the U.S. Geological Survey’s Earth Resources Observation and Science (EROS) normalized difference vegetation index data derived from satellites observing long-term changes in the greenness of Earth’s vegetation. The program divides the country into six regions due to different weather patterns.
Whole-Farm Revenue Protection (WFRP) provides insurance for all commodities on a farm under one insurance policy. This plan includes up to $8.5 million in insured revenue and can be tailored to farms with specialty or organic commodities; or those marketing to local, region, farm-identity preserved specialty or direct markets.
Yield Protection (YP) policies insure producers similarly to Actual Production History policies but use a projected price is used to determine insurance coverage. The projected price is determined in accordance with the Commodity Exchange Price Provisions and is based on daily settlement prices for certain future contracts – the producer selects the percentage they want to insure between 55 and 100 percent.