What does Crop Revenue Coverage (CRC) provide protection based on?

Crop Revenue Coverage (CRC) is designed to protect farmers against declines in both crop revenue due to lower prices and yield shortfalls. The coverage is based on the farmer's expected price and yield for the crop. Specifically, CRC establishes a revenue guarantee that combines these two vital factors, ensuring that if a farmer experiences a decrease in yield and/or a drop in the market price of the crop, they receive compensation that helps to mitigate the financial impact.

This type of insurance is particularly beneficial in volatile markets, where fluctuations in crop prices can significantly affect a farm's income. By focusing on price and yield expectations, CRC effectively addresses the dual risks farmers face, offering a more holistic form of protection compared to other insurance options that might focus solely on yield or specific costs associated with agriculture.