Key Takeaways

  • Two main types: Yield Protection (YP) covers yield loss only; Revenue Protection (RP) covers both yield and price drops — RP is more popular
  • You buy crop insurance through a licensed private agent — not directly from USDA
  • Premium subsidies mean you pay only 33–62% of the actuarial premium
  • Sales closing dates vary by crop and region — corn/soybeans close March 15 in most Corn Belt states
  • Your Actual Production History (APH) determines your yield guarantee

The Two Main Types of Crop Insurance

The federal crop insurance program offers dozens of policy types, but the vast majority of acres are insured under two basic structures: Yield Protection and Revenue Protection.

Feature Yield Protection (YP) Revenue Protection (RP)
What it coversYield loss below your APH guaranteeRevenue loss due to yield shortfall OR price decline
Price used for indemnityProjected price at planting timeHigher of projected price or harvest price
Premium costLowerHigher
Market share~20% of corn/soybean policies~65% of corn/soybean policies
Best forWhen commodity prices are stableMost situations, especially volatile price years

Revenue Protection also has a variant: RP with Harvest Price Exclusion (RP-HPE). This version uses only the projected price for indemnity calculations (like YP) but still covers revenue shortfalls from yield loss. It costs less than full RP and more than YP — a middle-ground option. See our RP vs. YP comparison guide for a full breakdown.

How Premiums Are Calculated

Your crop insurance premium is set by RMA's actuarial tables and based on four factors:

USDA subsidizes a portion of this premium. The exact subsidy depends on your coverage level:

Coverage Level Your Share of Premium USDA Share
50%35%65%
55%32%68%
60%32%68%
65%30%70%
70%30%70%
75%45%55%
80%48%52%
85%62%38%

Note: Subsidy rates apply to most basic policies. Enterprise Unit and Basic Unit policies receive higher subsidy rates. Optional Unit policies receive lower subsidies. Consult your agent for your specific policy's subsidy level.

Important: Higher coverage = smaller USDA share
The subsidy percentage decreases as coverage level increases. At 70% coverage, USDA pays 70% of the premium. At 85% coverage, USDA pays only 38%. The absolute dollar amount of the subsidy still increases at higher coverage levels — but a larger share falls to the farmer.

How to Buy Crop Insurance

Crop insurance is sold exclusively through USDA-approved private insurance agents. You cannot buy a policy directly from USDA or RMA. The agent works with you to select the right policy type, coverage level, and unit structure for your operation.

Steps to purchase crop insurance:

  1. Find an approved agent using the RMA agent locator at rma.usda.gov — search by state and crop
  2. Meet with the agent to review your APH records and choose a policy type and coverage level
  3. Sign and submit your application before your crop's sales closing date
  4. Pay your premium (or arrange premium financing) — due before or at planting in most cases

Sales Closing Dates

Sales closing dates are set by RMA and vary by crop and county. Miss the closing date and you cannot purchase coverage for that crop year. Most major crops have closing dates weeks or months before planting begins.

CropCorn Belt StatesSouthern PlainsSoutheast
CornMarch 15March 15Varies by county
SoybeansMarch 15March 15Varies by county
Winter WheatSeptember 30August 31 – Sept 30October 31
CottonN/AMarch 15March 15
Grain SorghumMarch 15March 15Varies by county
PeanutsN/AMarch 15March 15

Sales closing dates are set by RMA and may change annually. Always verify your exact deadline at rma.usda.gov or with your agent.

How to File a Claim

If your crop experiences a loss, you must notify your insurance agent within 72 hours of discovering the damage (or within 15 days of final harvest for yield-based losses). Failing to provide timely notice of loss can result in denial of your claim.

The claims process works as follows:

  1. Notify your agent immediately upon discovering loss — do not destroy evidence or harvest the damaged area before the adjuster visits
  2. An approved crop insurance adjuster visits your farm to assess the loss and measure damaged areas
  3. Your final yield is determined by the adjuster (for yield-based claims) or by comparing harvest records to your APH guarantee
  4. If an indemnity is owed, payment is typically issued within 30 days of final claim determination

What Is Actual Production History (APH)?

Your Actual Production History is the average of your farm's yield records over the last 4–10 years, used to set your yield guarantee. If your APH for corn is 180 bu/ac and you purchase 80% coverage, your guarantee is 144 bu/ac (180 × 80%). A loss occurs when your actual harvest falls below 144 bu/ac.

APH records are maintained by your insurance agent and must be verified with yield documentation (such as scale tickets or settlement sheets). Low-yield years from disasters can sometimes be excluded from the APH calculation under RMA rules. See our APH explainer article for full details on how to manage your yield history.

Find Your Crop Insurance Agent

Crop insurance must be purchased through a USDA-approved agent — search by state and crop type at the RMA website. AcreCompass does not sell insurance.

Find an Agent at RMA →

AcreCompass does not sell crop insurance and earns no commission on policy purchases.

Frequently Asked Questions

Is crop insurance required to get an FSA loan?
For FSA Direct and Guaranteed loans, crop insurance is generally required as a condition of the loan when the crop serves as security for the loan. FSA will specify the required coverage level in your loan agreement. In most cases, FSA requires at least 65–70% coverage on the crop being financed.
Can I switch from YP to RP mid-season?
No. Your policy type is locked in at the sales closing date. You cannot change from YP to RP after the closing date has passed. Changes to coverage level, unit structure, or policy type can only be made during the sign-up period before the next crop year's sales closing date.
What happens if a hailstorm destroys part of my field but not all of it?
Under most federal crop insurance policies, your entire insured unit is considered together — you don't receive a payment on just the damaged acres unless the damaged area brings your total unit yield below your APH guarantee. For example, if your unit guarantee is 150 bu/ac and 30% of your acres are devastated but the remaining 70% yields well, you may not receive an indemnity if the unit average is still above 150 bu/ac. Enterprise Unit policies work similarly but across multiple fields.
What is a deductible in crop insurance?
Crop insurance doesn't have a traditional deductible — instead, coverage level serves a similar function. If you purchase 75% coverage, the first 25% of your yield loss is yours to absorb. An indemnity is only triggered when your yield falls below your 75% guarantee. Purchasing 85% coverage reduces your out-of-pocket loss exposure but increases your premium (with a lower USDA subsidy percentage).
How does crop insurance interact with ARC-CO and PLC farm bill programs?
Crop insurance and ARC/PLC programs operate independently but are designed to work together. ARC-CO covers revenue losses at the county level; PLC covers price shortfalls against a reference price. Crop insurance covers your individual farm's yield or revenue loss. Many farmers participate in both — farm bill commodity programs and crop insurance — as complementary layers of risk protection.
Do I need crop insurance if I have strong financial reserves?
Even financially strong operations benefit from crop insurance because the USDA premium subsidy means you're receiving insurance at 30–65% below actuarial cost. For a 500-acre corn operation at 80% coverage, USDA might subsidize $15,000–$25,000 of your annual premium. Declining crop insurance means declining that subsidy. Most ag lenders also require coverage regardless of the borrower's financial strength.
Can I insure an organic crop?
Yes. RMA offers an organic price election for eligible crops that uses the certified organic price rather than the conventional commodity price in indemnity calculations. Certified organic farmers with documented price premiums can insure their crop at a higher value per bushel. You must elect the organic price option at the time of application and provide USDA organic certification documentation to your agent.
What is Whole-Farm Revenue Protection (WFRP)?
WFRP is a policy that insures the total revenue of your entire farm — all crops and livestock — rather than individual commodities. It's designed for diversified operations with five or more commodities where traditional crop-by-crop policies don't fit. WFRP uses your tax Schedule F revenue records as the basis for coverage. It's particularly useful for specialty crop farms, direct-market operations, and farms with significant livestock revenue.

Sources

  • USDA Risk Management Agency — Crop Insurance Program
  • USDA RMA — Summary of Business Reports, 2024 Crop Year
  • USDA Economic Research Service — Federal Crop Insurance: Background, Costs, and Selected Topics, 2025
  • USDA RMA — Premium Subsidy Tables, Policy Year 2026