Wheat and Other Annual Crops

Multi-peril crop insurance (MPCI) is available for many crops under the Federal Crop Insurance Program. One common type of policy that farmers and agricultural producers use to manage production risk is yield-based insurance.

Yield insurance is based on a producers actual production history (APH), which is established using four to ten years of actual farm production records. The insurance guarantee is based on this APH yield and the level of coverage chosen by the producer. You can insure man crops at coverage levels of 50 to 85 percent of APH.

If you prove an APH yield of 100 bushels per acre of corn based on production records and you choose an 80% level of coverage, your yield guarantee for the insurance would be 80 bushels per acre. This means that if you pay the premium and have the insurance in place you will receive an indemnity payment to reimburse you for a loss when your yield is below 80 bu/ac.

Some for of yield-based insurance coverage is available through the Federal Crop Insurance Program for many different crops including corn, soybeans, wheat, and nursery.