Margin Protection

What is Margin Protection?

Margin Protection is an area‑based insurance plan that helps safeguard your operation from unexpected drops in operating margin (meaning your revenue minus input costs). When county yields fall, commodity prices drop, input prices rise, or a combination of these occurs due to natural events, your Margin Protection insurance will step in.

Which crops are eligible for Margin Protection?

Margin Protection is available for corn, soybeans, rice and spring wheat.

How does Margin Protection work?

You choose a coverage level between 70% and 95% of your expected margin. You also select a Protection Factor—ranging from 80% to 120%—which determines the dollar amount of insurance per acre and the total protection your policy provides.

When are the key deadlines?

For corn, soybeans and spring wheat, the sales closing, cancellation and termination dates are September 30.

For rice, these dates fall on January 31 or February 28, depending on the region. Contact your agent or AgriSompo representative for details.

What is the Margin Protection Harvest Price Option (MP‑HPO)?

If you elect MP‑HPO, your expected revenue is calculated using the higher of the projected price or the harvest price, giving you added protection when markets rise.

Is Margin Protection based on my individual farm’s performance?

No. Margin Protection is an area‑based plan, meaning payments are determined by county averages, not individual farm results. Your experience may differ from the county outcome, but the plan provides broad protection against regional margin declines.