Base Price Modifier for Corn, Soybeans, and Wheat

Coverage Exclusions

  • High risk, unrated or uninsurable acreage.
  • WFRP, CAT coverage, and ARPI plans.
  • Acreage that is prevented from planting.
  • Acreage insured by written agreement with the exception of Written Unit Agreements.
  • Second or double crops as defined in the MPCI Policy.
  • Organically produced crops.

Indemnity Calculation Example

The BPM policy begins paying the supplemental amount per unit of measure when a covered production loss occurs and the production to count is less than the MPCI production guarantee based on the unit structure elected for the BPM policy. The BPM payable indemnity amount is calculated by taking the MPCI production guarantee for the BPM unit minus the MPCI production to count times the BPM price election times the insured share. If quality deficiencies have been determined due to an insured cause of loss, we will follow the MPCI Crop and Special Provision procedures to determine the net production to count.

An insured with corn at 160 bushel APH and a 100% share buys 75% coverage on a MPCI policy with Optional Units. The insured also buys a BPM policy at the maximum price available of $0.75 per bushel.

  1. The MPCI production guarantee/acre is 120 bushels (160 bushel APH x 75% coverage level).
  2. The insured harvests 105 bushels/acre, which is 15 bushels/acre below the MPCI guarantee (120 bushel guarantee – 105 bushels harvested).
  3. The BPM indemnity payment/ acreis as follows:
    BPM Indemnity:  120 – 105 = 15 bushels X $0.75 X 100% = $11.25/ acre.

BPM premium is calculated by multiplying the BPM liability by the BPM rate for the crop/county (rounded to the nearest whole dollar).