Margin Protection
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Margin Protection (MP) is designed to help protect against unexpected drops in both yields and market prices. It is a county-based crop insurance plan for corn, rice, soybeans, and spring wheat. It’s available in select states and counties and must be purchased ahead of planting.
MP uses county yields and prices to track your operating margin: (Expected Yield × Expected Price) – Input Costs = Margin. If that margin falls below the coverage level you choose, the policy may trigger an indemnity.
What does Margin Protection cover?
Margin Protection protects your operating margin per acre. It considers national revenue estimates and input costs. If those margins shrink beyond your insured level, it can trigger an indemnity, even if you don’t have a yield loss on your own ground.
How is margin calculated for Margin Protection?
It’s based on expected revenue (projected yields × projected prices) minus input costs (tracked nationally). If that margin drops below your coverage level, you could qualify for an indemnity payment.
How is Margin Protection different from Revenue Protection?
Revenue Protection covers yield and price. Margin Protection covers margin—revenue and cost risk. You can hold both policies. If both trigger, you’ll be paid whichever is higher.
Does Margin Protection use your farm’s data?
No. It’s based on county averages and national pricing, not your individual yields. That means you can qualify for an indemnity even if your farm does okay, but the broader market takes a hit.
When is the deadline to enroll in Margin Protection?
The sales closing date for Margin Protection on corn, soybeans, and spring wheat is September 30 of the year before the crop is insured. For rice, the MP deadline matches the standard sales closing date for other rice policies.
Which crops are eligible for Margin Protection?
Currently, corn, soybeans, wheat, and rice in select counties are eligible. Our experts can help confirm if you qualify.
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