Crop Revenue Coverage (CRC) provides protection not only against production shortfalls but also provides comprehensive protection for crops by establishing a dollar guarantee based on the applicable futures market exchange. In states with a March 15 sales closing date, CRC uses the average of the Chicago Board of Trade settlement prices during February for the December corn contract and the November soybean contract to establish a "Base Price". This is the minimum price per bushel an insured will receive if they experience a production shortfall. Additionally, a "Harvest Price" is established by averaging the CBOT settlement prices during October for the December corn contract and the November soybean contract. Indemnities are computed based on the higher of the Base Price or the Harvest Price. The maximum increase or decrease between base and harvest prices is $1.50/bushel for corn and $3.00/bushel for soybeans.

Examples:

Corn		120 bushel APH	70% CRC coverage
CRC Base Price:  $2.40/bu. X 84 bu. guarantee = $201.16 minimum guarantee
CRC Harvest Price:  $3.00/bu.	Harvest guarantee = $252.00 	
Harvested yield = 70 bu./acre
Indemnity = $42.00/acre   (14.0 bushels X $3.00/bu. harvest price)

CRC Harvest Price = $2.00/bu.	Minimum and Harvest guarantee = $201.16
Harvested yield = 90 bu./acre
Indemnity = $21.16/acre  (Minimum guar. of $201.16 - harvest revenue of $180.00)

The use of CRC provides valuable protection to a marketing plan by enabling producers to take advantage of early pricing opportunities. CRC policyholders can forward contract grain knowing that if they harvest less bushels than they have forward contracted they will be paid replacement cost (up to the limits described above) for those bushels. This provides safety as long as the number of forward contracted bushels never exceeds the number of bushels guaranteed under their CRC policy.

CropRisk always recommends the use of a revenue type of crop insurance to back up our marketing plans.