What does the Area Revenue Protection with Harvest Price Exclusion (ARPwHPE) plan protect against?

The Area Revenue Protection with Harvest Price Exclusion (ARPwHPE) plan primarily protects against county level production loss. This means that it focuses on the average revenue of a specific geographic area rather than an individual farmer's yield or revenue.

Under this plan, revenue is calculated based on the average yields and prices at the county level. When an area suffers from significant weather events or other factors that lead to reduced production, farmers who participate in this plan may receive indemnity payments that help mitigate the financial impact on their operations. The exclusion of the harvest price component means that while farmers are protected from the impacts of reduced production, they do not receive additional payments for any increases in market prices when determining their indemnities.

This structure makes ARPwHPE suitable for farmers who wish to manage risks related to crop yields in relation to their respective counties—acknowledging that their individual outcomes may vary from the collective county performance. By understanding that the plan's focus is on county-level revenue losses, farmers can make informed decisions about their coverage options relative to their unique risk profiles.