Multiple Peril Crop Insurance (MPCI)

Providing comprehensive protection against weather-related causes of loss and certain other unavoidable perils

MPCI is the most common crop insurance policy available through the Federal Crop Insurance Program. The Federal Crop Insurance Corporation (FCIC), which is overseen by the Risk Management Agency (RMA), underwrites crop insurance policies for a wide variety of crops in the United States. Crop insurance policies are sold and serviced by private insurance companies.

Coverage is available on over 76 crops in primary production areas throughout the United States at 50 to 75 percent of the actual production history (APH) for the farm. An indemnity price election from 60 to 100 percent of the Federal Crop Insurance Corporation expected market price must be selected at the time of purchase.

Minimum Catastrophic Risk Protection (CAT) coverage is available for an administrative fee of only $60 per crop per county. A waiver of the CAT administrative fee is available for producers who qualify as small and limited-resource farmers. MPCI coverage provides protection against low yields, poor quality, late planting, replanting costs, and prevented planting.

MPCI covers many crops: almonds, apples, beans (canning and processing) canola, citrus, citrus trees, corn, grain sorghum, soybeans, upland cotton, extra long staple cotton, cranberries, dry beans, figs, Florida fruit trees, millet, nursery, peaches, peanuts, pears, peas, peppers, plums, popcorn, potatoes, prunes, raisins, rice, safflower, wheat, barley, oats, rye, flax, stone fruit, sugar beets, sugarcane, sunflower seeds, sweet corn (canning and freezing, and fresh market), tobacco, tomatoes (canning and processing), and tomatoes (fresh market processing) and walnuts.

MPCI benefits include cash-flow protection, good loan collateral, added confidence when developing crop-marketing plans, stability for long-term business plans, and family security. The government shares in the premium costs.

Application and Financial Information
All MPCI insurance policies are available from private insurance agents. A list of crop insurance agents is available at all county U.S. Department of Agriculture Farm Service Agency offices.

Local crop insurance agents can describe the different insurance products available with their policy rates and terms. The agent can assist in selecting the best coverage for the crop based on the particular farm operation, risk management and budgetary needs.

Eligibility, Uses, and Restrictions
MPCI is a continuous policy and will remain in effect for each crop year after the original application is accepted. Producers may cancel the policy, a crop, a county, or a specific crop in a specific county, after the first effective crop year, by providing written notice to the insurance provider on or before the cancellation date shown in the applicable crop provisions. Producers must request policy changes from their insurance provider on or before the sales closing date for a change of price election or coverage level.

In addition, requests to increase the maximum eligible prevented planting acreage above the limitations contained in the crop policy must be made by the sales closing date for the applicable crop. Contract changes involving a successor-in-interest application and corrections of a producer's name, address, identification number, administrator, etc. may be made at any time.

Each crop year, the producer must submit an acreage report by unit for each insured crop. The acreage report must be signed and submitted by the producer on or before the acreage reporting date contained in the "Special Provisions" for the county for the insured crop. In the event of crop damage, producers should immediately notify their insurance provider of the damage.

Contact
Risk Management Agency
USDA/RMA/Stop 0801
Room 3053-South
1400 Independence Ave., SW
Washington, DC 20250
Phone: (202) 690-2803; Fax: (202) 690-2818
E-mail: RMA_mail@wdc.usda.gov

The RMA also has 10 Regional Service Offices, in various locations across the country, that may be contacted for information specific to any area. Call (800) 205-9953 for the address of the nearest office.

Internet
www.rma.usda.gov/pubs/rme/fsh_6.html

Last Updated January 24, 2005