Base Price Modifier for Corn and Soybeans

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.
  • Crops insured with New Producer status.

Indemnity Calculation Example

The insured will receive an indemnity payment from the BPM policy in addition to the MPCI payment only when a yield loss occurs and the production to count is less than the MPCI production guarantee. The formula for calculating the BPM indemnity is as follows: MPCI production guarantee for the BPM unit minus the MPCI production to count times the BPM price election times the insured’s share.

A grower has 200 acres of soybeans insured under the MPCI Revenue Protection plan (RP) at an 85% coverage level and 100% share. The approved yield for a unit is 45 bu.

The MPCI projected price is $9.00.

The RP guarantee is:
45bu. X 0.85 = 38 X $9.00 = $342.00 per acre.

The grower also buys a BPM policy with a price election of $0.80 per bushel.

The grower harvests 30 bu. per acre indicating a yield loss of 8 bu. per acre.

The harvest price was $9.75/bu. for a revenue to count of $292.50.

The indemnity payment per acre in this example will be:

  • RP indemnity:
    $342.00 - $292.50 = $49.50 per acre
  • BPM indemnity:
    38 bu. – 30 bu. = 8 bu. X $0.80 = $6.40 per acre
  • Total indemnity:
    $55.90 per acre

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