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Is GRP A Good Deal For My Soybeans?

Paul Mitchell and, F. Cody Heller (February, 2007)

Summary

GRP is a crop insurance policy that determines coverage and indemnity payments based on the official USDA National Agricultural Statistics Service (NASS) county average yield report, instead of a producer’s own yields. With GRP, an insured producer receives an indemnity if the NASS county average yield for the producer’s county is below the trigger yield chosen by the producer, regardless of whether the producer’s own crop suffers a yield loss. GRP assumes that a farmer’s yield is correlated with the county yield, so that indemnities are more likely paid when a farmer’s yield is low, but this is not always the case. Thus farmers may wonder—is GRP worth it for me? This fact sheet summarizes our analysis to answer this question.