Crop and Livestock Income Protection

What is Crop & Livestock Income Protection (CLIP)?

CLIP is an innovative federal crop insurance solution that provides umbrella revenue coverage across your entire farming operation. It is designed to complement your existing Revenue Protection (RP) policies by adding an additional layer of protection over multiple crops and livestock.

With CLIP, producers can move beyond commodity-by-commodity coverage and protect their combined revenue in one unified strategy.

How does CLIP work?

CLIP enhances your existing RP policies by providing coverage at the whole-operation level.

• Your underlying RP policies continue to function individually
• CLIP evaluates total farm revenue across all insured commodities
• A claim is triggered when combined revenue falls below your selected coverage level

This layered approach helps fill coverage gaps and provides stronger overall protection.

What level of coverage does CLIP offer?

CLIP provides flexible coverage levels ranging from:

• 55% to 85% of your combined insurable revenue

Key considerations:

• Coverage must be at least as high as your highest RP policy level
• Coverage is capped based on your lowest underlying RP coverage level

This ensures alignment between your base policies and your umbrella protection.

What events are covered under CLIP?

CLIP protects against the same risks covered by your underlying RP policies, including:

• Yield losses from natural disasters
• Revenue declines caused by market price changes
• Other insured causes of loss

Because it builds on RP, CLIP provides broad and consistent risk coverage across your operation.

When is a claim paid?

An indemnity is triggered when:

Your operation’s total revenue falls below your selected CLIP guarantee

Claims are processed after underlying RP adjustments are complete, ensuring accurate and timely payments.

Why should I consider CLIP?

CLIP delivers several key advantages:

• Higher coverage levels at a more affordable cost
• Whole-farm revenue protection across crops and livestock
• Reduced complexity compared to managing multiple high-level RP policies
• Improved financial stability during volatile market or yield conditions

It’s especially valuable for operations looking to maximize protection while managing premium costs.

How flexible is CLIP?

CLIP is designed to adapt to your operation:

• Works alongside your existing RP policies
• Allows you to tailor coverage levels to fit your risk strategy
• Can be combined with other endorsements such as:
• Enhanced Coverage Option (ECO)
• Hurricane Insurance Protection – Wind Index (HIP-WI)
• Margin Coverage Option (MCO)

This flexibility makes CLIP a powerful addition to a customized insurance plan.

Who is eligible for CLIP?

To participate, producers must:

• Hold Revenue Protection (RP) policies for at least two commodities
• Have those policies within the same county
• Work with the same insurance provider and agency

Not all commodities must be included, but eligibility requirements must be met for participation.

What is not eligible under CLIP?

CLIP cannot be used with certain products or scenarios, including:

• Catastrophic (CAT) coverage
• Yield Protection (YP)
• Area-based plans
• Certain endorsements and specialty coverages

These limitations ensure CLIP remains focused on enhancing RP-based strategies.

Where is CLIP available?

CLIP is currently available for select crops and livestock in specific states and counties, with expansion expected over time as the program evolves.

Why choose CLIP?

CLIP provides a smarter way to protect your operation by delivering:

• Stronger, whole-farm protection
• Affordable access to higher coverage levels
• Simplified insurance management
• Enhanced resilience against market and production risk

It’s a forward-thinking solution designed for today’s diversified agricultural operations.