Guarantee of income RA 1
The covering and other parametres of this program are similar to what are applied in the standard program brave insurance of a crop (MPCI [2]). However if the program brave insurance of crop MPCI offers protection against decrease in volumes of output, the program of the Guarantee of the income - protection against decrease in the income agricultural the enterprises because of falling of the prices either low productivity, or a combination of these two factors.
Insurance
The program of the Guarantee of the income also provides an option of the price for an autumn crop. This option provides possibility of use of two prices - the autumn price at the moment of harvesting or the look-ahead price for a crop, in the established spring (at the conclusion of the contract of insurance), - for definition of level of the guaranteed income counting on area unit (1 acre). Thus, with a price option, the program of the Guarantee of the income works similarly to the program of Insurance of the income on grown up cultures (CRC [3]), and without an option - is similar to the program of Insurance of the income of an economy (IP [4]). The program of the Guarantee of the income protects the income of the manufacturer of falling below the established level of the guaranteed income.
Brave insurance of crop MPCI 5
MPCI is the oldest and most popular of the list of products for агро sectors. As appears from the name, MPCI gives protection against the falling of productivity caused by variety of risks. For the majority of cultures, these risks include a drought, a superfluous moisture, frosts, a wind, flooding and the harm put by insects and illnesses. Covering level under program MPCI is based on average productivity of each separate economy. If the received productivity of culture is smaller, than the guaranteed productivity, will be paid the insured economy the sum which does not suffice to the guaranteed level (crop cost).
Insurance of the income of economy IP 6
Income insurance is a product which is based on average productivity of each individual manufacturer, and protects from decrease in the income of an economy as a result of falling of the prices and-or productivity falling. Though the program of Insurance of the income is similar to the program of Insurance of the income of culture cultivation (CRC), it does not provide the mechanism of reaction to increase of the price which is given by program CRC. The guaranteed level of the income and the size of an insurance premium will be calculated on the basis of the look-ahead price established in the spring. Compensation is paid when the income sum on all cultures (the quantity of grown up production increased by the price of a crop after harvesting) is less cover amounts.
Insurance on an index of crop GRP7
Covering GRP is based on area indicators, instead of on indicators of an individual economy, therefore the data about average productivity of an individual economy for this program is not necessary. Payment to the insured economy under program GRP is made when average productivity on 1 acre on area falls below the guaranteed level of productivity. The federal corporation on crop insurance makes payment in following, after the insured agricultural year, calendar year. As this plan is based on productivity on area, instead of on individual productivity of an economy even under condition of poor harvest reception the insured farmer can not receive compensation if productivity decrease has been caused not by catastrophic risks.
Insurance on an index of income GRIP 8.
GRIP is one of the newest insurance products for insurance of the income of the agricultural enterprises. It is based on area indicators, instead of on indicators of a separate economy and consequently average productivity of an economy does not undertake in attention. Program GRIP provides insurance upon the potential loss of the income caused by considerable reduction of productivity in area or the price for concrete culture. After publication of the data of productivity on areas (the data of national statistical service), the income of crop sale on area (crop cost in monetary measurement) till April, 16th of next agricultural year is counted up. Under program GRIP of compensation to an economy it is paid in the event that incomes on area less than the established guaranteed level. As this program is based on an income index on area, instead of a separate economy the insured farmer can have losses, but it will not receive thus payment under program GRIP if indicators of an index of the income were not below certain level.
Insurance of the income upon cultivation of culture CRC9
CRC is the most widespread program of insurance of the income. Being based on average productivity of the manufacturer for the certain period, increased by the price for an agricultural crop, this program guarantees certain level of the income which is called as a full guarantee. The covering and other parametres of the program are similar to what are used in the program brave insurance of crop MPCI. For calculation of a full guarantee the price which is higher of two prices - the look-ahead price for a crop, in the established spring (the base price) or the autumn price at the moment of harvesting (the price on harvests) is used. Thus guaranteed level of the income can increase, but the insurance premium will not change. The award will pay off proceeding from the base price. As insurance of the income of the manufacturer is the main task of program CRC the program includes positions which concern both productivity, and the price. Program CRC compensates falling of incomes as a result of reduction of prices, productivity or a combination of both these factors. The loss is defined when the received income (the volume of the received crop increased by the price in cleaning) is less than a full guarantee on all insured area.
