Which crops are eligible for coverage under Yield Protection (YP)?

Yield Protection (YP) is a specific type of crop insurance designed primarily to cover crops that are traded on commodity exchanges. This coverage is intended for those crops that have established market prices, allowing farmers to receive indemnity payments based on the difference between their actual yield and their expected yield, as determined by the insured price.

Crops that are traded on commodity exchanges, such as corn, soybeans, and wheat, have standardized contract values, making it easier for insurance companies to ascertain risk and establish premiums. This is why this option is considered eligible for coverage under YP.

In contrast, while all farm crops broadly may seem like a viable option, not all of them are traded on commodity exchanges, which disqualifies them from this specific insurance coverage. Crops used for silage and non-commodity crops also fall into categories that typically do not align with the requirements for Yield Protection, as they either are not priced through commodity exchanges or lack the necessary commodity status required for this type of insurance.