Multiple Peril Crop Insurance (MPCI)
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The MPCI plan of insurance offers a producer protection against yield and/or quality loss due to
weather related and certain other unavoidable perils. Coverage is based on the producer's Actual
Production History (APH) and an Established or Projected Market Price that is set by the Federal
Crop Insurance Corporation. Coverage Levels, depending on area, are available from 50% up to
85% of the producers APH. The producer's Production Guarantee is their APH multiplied by the
selected Coverage Level multiplied by the planted acres. A producer is indemnified when their
harvested and/or appraised production is less than the Production Guarantee as long as the shortage
is due to an insurable cause of loss. The amount of indemnity is determined by multiplying the
production shortage by the percentage price election the producer elected by the Established or
Projected Market Price by the producer's ownership share in the acreage. Catastrophic Risk
Protection (CAT) is an endorsement to the MPCI Policy that provides 50% Coverage Level and a
55% Price Election. MPCI Coverage is available on a very wide range of crops.
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