Crop and Livestock Income Protection (CLIP)

Product Overview

Understanding Crop and Livestock Income Protection (CLIP)

CLIP is a federal crop insurance option that helps you secure your revenue across both crops and livestock, simplifying your risk management with a single, flexible policy. This new umbrella revenue protection product is designed to complement your existing Revenue Protection (RP) policies. Instead of buying high coverage levels crop-by-crop, CLIP allows you to apply an additional layer of protection across your entire farm (within one county) at a more affordable cost.

Bundling multiple commodities into a single CLIP unit allows for premium savings compared to reaching the same coverage levels on each individual policy. Farmers pick which of their policies to bundle, as long as there are at least two.

Benefits

Cost-effective high coverage: Up to 85% coverage levels at a more affordable rate
Income stability: Bottom-line protection when markets drop or yields fall
Streamline protection: Protects multiple crops and livestock together under one structure
Efficient risk management: Provides access to stronger risk management options without the cost of higher individual RP policies
County-by-county flexibility: Purchase CLIP on a county-by-county basis

Guarantee

CLIP considers your guaranteed revenue from all of the crops under your bundle, up to 85%.

Payment

CLIP takes the value of all crops harvested and adds it to the individual RP indemnity payments. If this total is less than your CLIP guarantee, you are paid the difference.

Coverage Levels

55, 60, 65, 70, 75, 80, and 85 percent. CLIP coverage must be at least as high as the highest underlying RP policy you have.

Eligibility

States: Nebraska and South Dakota

Crops:
CLIP covers a basket of spring crops and livestock tied to Revenue Protection (RP):
Barley, canola, corn, dry beans, dry peas, flax, grain sorghum, oats, popcorn, soybeans, sunflowers, wheat, weaned calf

Units

CLIP unit is a single unit containing all insurable acreage or number of head of the underlying RP crops insured under CLIP in the county for the insurance period. CLIP does not impact underlying policy unit structure.

CLIP Program Pairing

Enhanced Coverage Option (ECO)
Margin Coverage Option (MCO)
High Risk Land Exclusion Option (HRLEO)

Deadline

CLIP uses the earliest commodity sign-up deadline covered under the umbrella policy.

Available to all qualifying producers regardless of race, color, national origin, religion, sex, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted of funded by USDA (not all bases apply to all programs).

How CLIP works

A CLIP indemnity is triggered only after underlying RP indemnities are applied, and the total actual revenue (production plus RP payments) still falls below the CLIP guarantee. This layered structure protects the coverage gap between the RP level and the higher CLIP level. Review three scenarios below.

All three crops met their Revenue Protection (RP) guarantees so no payment was owed. But all three of the revenue payments combined did not meet the 85% CLIP guarantee, so a CLIP indemnity covered that gap.

All three crops were short of their guarantees for their individual policies, so all three Revenue Protection (RP) policies paid an indemnity. CLIP paid out to cover the gap between the lower RP guarantees and the 85% CLIP coverage.

All three crops did well with revenues above the 85% CLIP guarantee. No loss payments are owed for CLIP or any of the Revenue Protection (RP) policies.

Are you covered?

We know crop insurance decisions can feel complicated. Our insurance officers have access to a tool that analyzes your numbers and local data to help you make the best decisions to meet your goals. Get started by completing the inquiry form and we’ll find a time that is convenient for you to meet with us.

Get Started

Why Work With Us for Crop and Livestock Insurance

Icon of a person with a thought could with a leaf in the center

Dedicated Specialists

Our agents are non-commissioned and focus 100% of their time on crop insurance and livestock insurance — every working day of every week in the year. They don’t sell property, casualty or life insurance.

Icon of a shield with three people within it

Highly Trained

Our insurance officers receive annual training on RMA changes to crop insurance and livestock insurance plans and stay informed throughout the year.

Icon of a light bulb and circle with a dollar sign and arrows pointing in a circle

Financial Expertise

As a lender, we understand financial risk and work to protect your working capital, not just your crop or livestock.

Icon of a hand pointing at a browser window with a dollar sign in the middle

Exclusive Tools

Leverage our exclusive policy review and Hail Analyzer tools to receive a personalized insurance plan - maximizing your net indemnity, cash flow, forward market opportunities, and minimizing your premium costs.