What is the upside limit on the harvest price in the Revenue Protection (RP) plan?

In the Revenue Protection (RP) plan, the upside limit on the harvest price is set at 200% of the projected price. This means that when the actual harvest price is calculated, it cannot exceed twice the projected price established at the beginning of the insurance year.

The RP plan is designed to protect against revenue loss due to both low prices and reduced yields. By allowing the harvest price to rise to 200% of the projected price, it provides farmers with a safety net that accounts for significant price increases that could occur during the growing season. This is particularly important in volatile markets where agricultural commodities can experience sharp price fluctuations.

Establishing a cap at this level ensures that while farmers benefit from higher prices during favorable market conditions, the insurance framework remains sustainable and manageable for insurers by limiting potential payouts.