Crop insurance premiums protect farmers from revenue and yield losses due to drought, floods, pests, and market price drops. USDA Risk Management Agency (RMA) offers several policy types — Revenue Protection (RP), Revenue Protection with Harvest Price Exclusion (RPHPE), Yield Protection (YP), and Actual Production History (APH) — each with different coverage levels and premium costs. This estimator provides representative premium ranges to help you budget before contacting your crop insurance agent.
Policy Details
Price × expected yield — e.g., $4.50/bu × 180 bu = $810/acre
Premium Estimate
Premium by Coverage Level — Quick Reference
| Coverage Level | Corn RP (avg county) | Soybean RP (avg county) | Federal Subsidy |
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How to Use the Crop Insurance Premium Estimator
Crop insurance premiums are subsidized by the federal government through USDA's Risk Management Agency, meaning farmers pay only a fraction of the actuarial cost. This estimator helps you understand the premium range before your sales closing date.
Step 1: Choose Your Policy Type
Revenue Protection (RP) is the most popular policy — it covers losses from both low yields AND low prices, with harvest price option included. If corn prices fall at harvest, RP adjusts your guarantee downward, but if prices rise, your guarantee increases. RPHPE removes the harvest price option, making it cheaper but less protective in rising price environments. Yield Protection (YP) only covers yield losses, not price risk.
Step 2: Select Coverage Level
Coverage level is the percentage of your expected revenue or yield that is protected. At 70%, you are insured for 70% of your proven average yield or revenue. Most agricultural lenders require 70% minimum coverage for operating loans. The federal subsidy rate is highest at 65-70% — above 75%, the subsidy percentage drops, making higher coverage levels disproportionately more expensive.
Step 3: Enter Your County Risk and Acreage
Premium rates vary significantly by county based on historical loss ratios. High-risk counties (drought-prone Great Plains, flood-prone river bottoms) have actuarial rates 2-3x higher than low-risk counties. Your expected revenue is the crop price election multiplied by your APH yield — for corn at $4.50/bu with a 180 bu/acre APH, that is $810/acre.
Understanding the Federal Subsidy
USDA subsidizes 38-67% of the premium cost depending on coverage level. At 65% coverage, the government pays 59% of actuarial cost; at 80%, only 48%; at 85%, only 38%. This subsidy structure makes mid-range coverage levels the best value per dollar spent on protection.
FAQ
Is this crop insurance estimator free?
Yes, completely free with no signup required. All calculations run in your browser and no farm data is stored or sent to any server.
How accurate are these premium estimates?
These are estimates based on typical USDA RMA premium ranges. Actual premiums depend on your specific county, historical yields, practice type, and annual USDA actuarial tables. Use the USDA Cost Estimator at rma.usda.gov for exact quotes.
What is the difference between RP and APH crop insurance?
Revenue Protection (RP) covers revenue losses from low prices or low yields and includes harvest price option. Actual Production History (APH) or Yield Protection (YP) covers only yield losses. RP typically costs 20-40% more than YP but provides much better protection in volatile markets.
What coverage level should I choose?
Most lenders require 70% coverage level for operating loans. The 75-80% range offers a good balance of protection and cost. Higher coverage (85%) costs significantly more per acre but protects more of your expected revenue. First-time buyers often start at 75%.
How much does crop insurance typically cost per acre?
Costs vary widely by crop and region. Corn in the Midwest typically runs $15-35/acre for 75% RP. Soybeans run $8-20/acre. Specialty crops like fruits and vegetables can run $50-200/acre. Premiums increase sharply at 80-85% coverage levels.
When is the sales closing date for crop insurance?
Sales closing dates vary by crop and state. For spring crops like corn and soybeans, the deadline is typically March 15. Winter wheat closes around September 30. You must purchase or change coverage before the sales closing date for that crop year.