Group Risk Income Protection (GRIP) is a county-based revenue insurance product that pays the producer in the event the county average per-acre revenue falls below the trigger revenue level selected by the producer. GRIP is based on the same principle as Group Risk Protection (GRP), but guarantees revenue instead of yield. GRIP offers the producer a guarantee against declines in revenue by county. GRIP also has the Harvest Revenue Option (GRIP-HRO) available, which uses the greater of the expected price or the harvest price to figure the producer’s trigger revenue and policy protection.
GRIP is a flexible program that allows the farmer to choose between several coverage levels (65-90%) and amounts of price protection up to 150% of the expected county revenue.
The Harvest Revenue Option (GRIP-HRO) allows the producer to increase expected county revenue if the harvest price is higher than the expected price.
GRIP requires no record keeping and less paperwork than other crop insurance products.
GRIP uses county yields based on National Agricultural Statistics Service (NASS) data, and determines expected and harvest prices using commodity future contracts from the Chicago Board of Trade.
GRIP pays an indemnity if county per-acre revenue is lower than selected trigger revenue.
A producer may select GRIP with or without the Harvest Revenue Option.