Margin Protection (MP & MP-HPO)

When creating a new policy or adding a related coverage for a policy that has not been rolled, a Select Policy dropdown displays when a Margin Protection plan—“MP (16)” or “MP-HPO (17)”—is selected from the Crop Plan dropdown.

NOTE: Margin Protection policies can have more than one Primary County designation if the Type and Practice are different.

The Select Policy dropdown allows a user to select which prior RY Plan 01, 02, or 03 coverage is related to the new MP/MP-HPO coverage being created in the current RY (a). Or, to create a stand-alone policy, a user can select “Create a New/Stand-alone Policy for the MP Coverage” from the Select Policy dropdown (b).

WARNING: To avoid errors with the RMA, DO NOT select the Related Coverage checkbox on this page.

About Enterprise Units & MP

According to RMA, on MP policies, the unit structure election must be made by the earlier SCD. To do this, the Unit Structure Transaction Code field displays on the Add New Policy and Add New/Maintain Coverage pages when Margin Protection is elected. In this field, for the related MP coverage, the user selects the unit structure that the grower is electing on the base coverage even though its SCD is later. Then, when the base coverage is added, the user selects which type of enterprise units they are electing (e.g., a single EU for the crop/county, EUs by Irrigation Practice, EUs by Cropping Practice, MCEU) and based on that election, the System determines the proper Unit Structure Transaction code.

If the user selects a different unit structure on the base coverage than what was selected in the Unit Structure Transaction Code on the MP coverage, the System will throw a suspension and the coverages will also error at RMA.

If adding an MP/MP-HPO coverage to an existing policy where the related coverage has been rolled to the new Reinsurance Year, a Related Coverage checkbox displays when a Margin Protection plan—“MP (16)” or “MP-HPO (17)”—is selected from the Crop Plan dropdown (and CAT is not selected for 2019+ RYs). This field allows a user to indicate which Plan 01, 02, or 03 coverage is related to the new MP/MP-HPO coverage.

NOTE: Margin Protection policies can have more than one Primary County designation if the Type and Practice are different.

When this checkbox is marked, a Select Related Coverage dropdown displays for selecting the related active Plan 01, 02, or 03 coverage from the policy; a policy must have the same RY/State/County/Crop as the MP/MP-HPO coverage to appear in this list.

WARNING: Only select the Related Coverage checkbox if the underlying MPCI coverage has been rolled into the new Reinsurance Year—otherwise the coverage will be in error with the RMA. if the underlying MPCI coverage has not rolled, see "IF THE RELATED POLICY HAS NOT ROLLED".

NOTE: If the related coverage is canceled, the System will clear the Related Coverage checkbox and remove the selected coverage from the Select Related Coverage dropdown and the coverage will become a stand-alone policy.

About Enterprise Units & MP

When Enterprise Units are elected on an MP coverage, for 2022+ RYs, this field will populate with the unit structure options regardless of if all those forms of Enterprise Units are actually available for the RY/State/County/Commodity since when related Margin Protection rolls with the 9/30 SCD and ADMs are not available. This will prevent LRRs on MP coverages with different SCDs than their base coverage.

The View MPCI Detail Lines page displays a few different fields for the Margin Protection plans. The appearance of these fields depends on whether you are creating a stand-alone policy or adding coverage to a related base coverage.

For a Stand-alone MP/MP-HPO Policy

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Trigger Margin: This is the Trigger Margin from the Add New/Maintain Detail Line page (Expected Margin x Coverage Level).

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$ Amt of Ins: This is the Dollar Amount of Insurance from the Add New/Maintain Detail Line page.

For an MP/MP-HPO Coverage with a Related Coverage

These fields specific to Margin Protection display as read only on the View Detail Lines page when the MP/MP-HPO Coverage has a related Plan 01, 02, or 03 coverage:

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App’d Yield: This is calculated using the Approved Yield and Acres from the related MPCI coverage.

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Trigger Margin: This is the Trigger Margin from the Add New/Maintain Detail Line page (Expected Margin x Coverage Level).

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$ Amt of Ins: This is the Dollar Amount of Insurance from the Add New/Maintain Detail Line page (Approved Yield x Projected Price x 0.85 + Trigger Margin).

The Fast Edit AR and Fast Edit PR buttons will not be available for MP detail lines linked to a base coverage. Also, since MP lines related to a base coverage are automatically created on save of acreage for the base coverage, the Add/Delete buttons will not display either.

Fields specific to MP/MP-HPO are displayed when adding or maintaining detail lines on a coverage. The appearance of these fields depends on whether you are creating a stand-alone policy or adding coverage to a related base coverage.

For a Stand-alone Policy

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Expected Margin: This comes from A00810.

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Expected Index: This is Expected County Yield as found in A00810.

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Trigger Margin: This is calculated as the Expected Margin x Coverage Level.

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Dollar Amount of Insurance: This is calculated as the Approved Yield x Projected Price x 0.85 + Trigger Margin.

For an MP/MP-HPO Coverage with a Related Coverage

When acres are keyed for the base coverage, read-only detail lines are created on the linked Margin Protection coverage. This applies to timely planted, late plant, uninsurable, and prevented plant detail lines.

For the Related Coverage (Plan 01, 02, or 03)

To allow a user to indicate that a Plan 01, 02, or 03 coverage is the base (related) coverage for an MP/MP-HPO coverage on the policy, a Related Margin Protection Coverage checkbox is available on the Maintain Coverage page for that coverage.

NOTE: If the MP/MP-HPO coverage is later canceled, this checkbox is removed by the System.