Revenue Floor & Know Exactly When Your Insurance Pays
Models the revenue floor
Revenue protection insures your dollars, not just bushels: it pays when actual yield × harvest price drops below your guarantee. Enter APH yield, prices and a 50–85% coverage level to see your revenue floor, the indemnity trigger, the expected payout and your premium after the federal subsidy.
Build your revenue-protection policy
Runs entirely in your browser — nothing is uploaded.
Next: file your claim — at 130 bu/ac and $4.00 you are $151/ac under the floor, so the policy owes about $15,104 across 100 ac. Verify the harvest price and APH on your summary of coverage.
USDA-RMA Revenue Protection: guarantee = APH yield × coverage% × MAX(projected, harvest) price; indemnity = MAX(0, guarantee − actual yield × harvest price). Subsidy shares are the RMA Basic/Optional & Enterprise-unit schedule. Planning figures — your county base rate & actuarial data set the exact premium.
| Coverage | Guarantee $/ac | Trigger yield | Subsidy | Your premium $/ac |
|---|---|---|---|---|
| 50% | $419 | 105 bu | 80% | $2.11 |
| 55% | $461 | 115 bu | 80% | $2.99 |
| 60% | $503 | 126 bu | 80% | $4.13 |
| 65% | $545 | 136 bu | 80% | $5.57 |
| 70% | $587 | 147 bu | 80% | $7.27 |
| 75% | $629 | 157 bu | 77% | $10.42 |
| 80%◀ you | $671 | 168 bu | 68% | $19.79 |
| 85% | $713 | 178 bu | 53% | $41.50 |
Subsidy column = Enterprise unit. Source: USDA-RMA premium-subsidy schedule.
Revenue protection — key facts
- Revenue guarantee
- APH × coverage% × max(projected, harvest)
- Indemnity
- max(0, guarantee − actual yield × harvest price)
- Trigger yield
- guarantee ÷ harvest price
- Coverage bands
- 50% to 85% in 5-point steps
- Enterprise subsidy
- 80% (≤70%) → 77% (75%) → 68% (80%) → 53% (85%)
- Basic/Optional subsidy
- 67% → 55% (75%) → 38% (85%)
- Price basis
- RP uses the GREATER of projected & harvest
- Net floor
- guarantee − farmer-paid premium
- Plan type
- USDA-RMA Revenue Protection (RP)
- Privacy
- Runs in your browser; nothing uploaded
The premium tells you what it costs — the floor tells you what it protects
Most crop-insurance tools only estimate a premium. That answers “what does it cost?” but not the question a grower actually has: at what coverage level does the policy pay, and what revenue am I guaranteed? Revenue Protection works on dollars per acre. Your guarantee is your approved (APH) yield times the coverage level times the greater of the projected and harvest price. If your actual yield times the harvest price comes in below that guarantee, the policy pays the difference — so a price crash, a yield loss, or both together can trigger a claim.
This calculator draws the revenue floor as a shaded band and drops your price-and-yield scenario onto it; when the scenario falls below the floor, an indemnity bar lifts your realized revenue back up to the guarantee. Alongside it you get the indemnity trigger yield and price, the expected indemnity, your premium after the RMA subsidy and the net-revenue floor — the least you keep per acre after buying the cover. Use the coverage-level ladder to weigh a higher floor against the steeper farmer-paid premium at 80% and 85%.
See the floor, not just the premium
The shaded revenue floor shows what you're actually guaranteed.
Find the trigger
The exact yield and price below which the policy pays.
Compare coverage bands
Higher floor vs steeper premium at 50–85% — side by side.
Know your net floor
Worst-case revenue per acre after the premium you pay.
Premium subsidy by coverage level (USDA-RMA)
The federal government pays a share of every Revenue Protection premium. The share falls as coverage rises and differs by unit structure. Source: USDA Risk Management Agency premium-subsidy schedule.
| Coverage level | Enterprise-unit subsidy | Basic / Optional subsidy | Guarantee multiplier on APH |
|---|---|---|---|
| 50% | 80% | 67% | 0.50 |
| 55% | 80% | 64% | 0.55 |
| 60% | 80% | 64% | 0.60 |
| 65% | 80% | 59% | 0.65 |
| 70% | 80% | 59% | 0.70 |
| 75% | 77% | 55% | 0.75 |
| 80% | 68% | 48% | 0.80 |
| 85% | 53% | 38% | 0.85 |
How to use it — five steps
- 1. Pick the commodity to load a typical APH yield and projected price, or choose “Custom” and enter your own.
- 2. Set the prices and coverage — the projected price, the harvest price, and a coverage level from 50% to 85%.
- 3. Enter this season — your actual yield and the insured acres, to model the outcome.
- 4. Read the floor and trigger — the revenue guarantee, the trigger yield and price, and any indemnity that pays.
- 5. Check the premium — your premium after the RMA subsidy and the net-revenue floor, then compare bands on the ladder.
Frequently Asked Questions
How is the revenue guarantee calculated?+
The revenue guarantee equals your APH (approved) yield × coverage level × the higher of the projected and harvest price: Guarantee = APH yield × coverage% × MAX(projected price, harvest price). For example, 180 bu corn at 80% coverage with a $4.66 projected price gives a floor of 180 × 0.80 × 4.66 = $671.04 per acre. Because Revenue Protection includes the harvest-price increase, the floor rises if prices climb.
When does revenue protection actually pay an indemnity?+
It pays whenever your calculated revenue — actual yield × harvest price — falls below the revenue guarantee. The indemnity is MAX(0, guarantee − actual yield × harvest price). So a payout can be triggered by low yield, low price, or any combination of the two that pushes revenue under the floor, even if your yield alone was acceptable.
What is the indemnity trigger yield?+
The trigger yield is the yield at the current harvest price that just meets your guarantee: trigger yield = revenue guarantee ÷ harvest price. Below it, the policy pays. At a $671.04 guarantee and a $4.00 harvest price, the trigger yield is 167.76 bu per acre — so even a 167 bu crop pays when the price has dropped to $4.00, because revenue, not yield, is insured.
How does the harvest-price option (harvest price exclusion) work?+
Standard Revenue Protection uses the GREATER of the projected and harvest price in the guarantee. If prices rise after planting, your guarantee rises with them, so a short crop is valued at the higher price. The Harvest Price Exclusion option removes that upward adjustment for a lower premium — this calculator models the standard (greater-price) form.
How much premium do I actually pay after the subsidy?+
The federal government pays a large share of the premium. For Enterprise units the subsidy is about 80% at 50–70% coverage, 77% at 75%, 68% at 80% and 53% at 85%; Basic/Optional units get less (67% down to 38%). Your out-of-pocket premium is the total premium minus that subsidy. This tool shows both the total and the farmer-paid premium per acre and in total.
What is APH or approved yield?+
APH stands for Actual Production History — the average of your verified yields over up to ten years, with substitutions and caps under RMA rules. It is the yield your guarantee is built on, so a higher, well-documented APH raises both your guarantee and your premium. Keep accurate production records to protect your approved yield.
What's the difference between Revenue Protection and Yield Protection?+
Yield Protection insures only the bushels: it pays when yield falls below a guaranteed yield, valued at the projected price. Revenue Protection insures the dollars: it pays when yield × harvest price falls below a guaranteed revenue, so it covers both price drops and yield losses. Revenue Protection is the more popular plan for major row crops for that reason.
Is 80% coverage worth it over 75%?+
Raising coverage from 75% to 80% lifts your revenue floor by one band but the premium rate climbs faster than the coverage — and the Enterprise subsidy falls from 77% to 68%. Use the coverage-level ladder in the tool to compare the higher guarantee against the higher farmer-paid premium at each band, then pick the floor you can justify for your operation's risk.
What is the net-revenue floor?+
The net-revenue floor is the revenue guarantee minus the premium you actually pay: it is the worst-case revenue per acre you are left with after buying the policy, before any other costs. It answers “if everything goes wrong, what's the least I'll have per acre?” and is the truest measure of the safety net the policy buys.
Does a higher harvest price ever hurt me?+
No — under standard Revenue Protection a higher harvest price can only help, because the guarantee uses the greater of the two prices. A higher harvest price raises your floor (protecting a short crop) and also raises the revenue you actually earn. The risk Revenue Protection guards against is the harvest price falling combined with, or instead of, a yield shortfall.
Can I use this for PMFBY or non-US schemes?+
The revenue-floor logic is general: a sum insured (your guarantee) is compared with realized value, and the shortfall is the claim. India's PMFBY uses a yield-index sum insured with capped farmer premiums (about 2% Kharif, 1.5% Rabi, 5% commercial/horticulture). Enter your scheme's guarantee basis as the projected price × APH and read the floor and trigger; the premium-subsidy column reflects US-RMA figures.
Are these figures exact for my farm?+
They are solid planning figures. The guarantee and indemnity math is exact, but the premium depends on your county's actuarial base rate, your unit structure, options and any historical-yield discounts, which only your RMA-approved agent's quote can finalize. Use this tool to understand the floor, the trigger and the trade-offs, then confirm the premium with your crop-insurance agent.