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Area Revenue Protection (ARP) & Area Revenue Protection With Harvest Price Exclusion (ARPHPE) plans of coverage are an area-based revenue insurance which provide protection against widespread loss of revenue in a county. ARP & ARPHPE do not provide coverage for prevented planting or replanting. ARPHPE does not use the harvest price to calculate the trigger revenue, only the projected price. ARP uses the greater of the projected price or harvest price to calculate the trigger revenue.
Benefits:
- Provides a higher level of coverage than individual plans of insurance
- Provides protection for producers whose land is scattered across a county because it covers reduction in the average county yield or commodity price
- Offers upside price protection by valuing loss bushels at the harvest price