MPCI
MPCI policies provide coverage for loss of production or a combination of yield and price coverage.
Multiple Peril Crop Insurance (MPCI) is an agriculture insurance policy designed to protect insureds against a broad range of natural perils, including but not limited to, drought, hail, insects, etc. Although the policy is administered through a private company, such as ProAg, the federal government through the Federal Crop Insurance Corporation (FCIC) reinsures a portion of the risk, making it an affordable option.
MPCI crop insurance policies provide protection against low yields and/or the decline in price of the crop depending upon the type of MPCI policy the insured chooses.
MPCI policies are federally subsidized crop insurance policies available through the Federal Crop Insurance Program. This means approved insurance providers, like ProAg, write and handle the policies. Meanwhile, the United States Department of Agriculture Risk Management Agency (USDA RMA) oversees the program, setting the annual rates and regulations all private insurers must follow while writing policies.
Farmer-paid premiums are subsidized for MPCI policies, helping keep the cost of protection low. MPCI coverage must be established each year before federal deadlines.
There are several MPCI policy options designed to protect farmers from the impact of yield loss, market changes or revenue loss. Because every operation is unique, it’s best to meet with your nearest independent ProAg agent to explore options. Because our ProAg agents are locally based, they have a greater understanding of the agriculture practices and needs right where you live. They have important risk management insights that will support your decision-making process.
The Federal Crop Insurance Corporation (FCIC), a government corporation overseen by the United States Department of Agriculture (USDA), promotes the economic stability of agriculture through a sound system of crop insurance by establishing the premium rates and insurance terms and conditions for MPCI policies.. This means the prices for federally subsidized policies are the same no matter which approved insurance provider or local agent you choose.
Looking for more background information? Check out our Basics of Crop Insurance page or visit the RMA website to learn more. Ready to explore policy options? Find your local independent ProAg agent.
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