Provides coverage against an unexpected decrease in operating margin.

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Margin Protection Overview

How it Works

  • The popular Revenue Protection insurance focuses on the revenue side of your balance sheet, but does not protect you against unexpected increases on the input cost side.

    That’s where Margin Protection comes in.

How it’s calculated

  • While the revenue formula is relatively simple (Yield x Price = Revenue, using the higher of the February or October price average), cost calculations are slightly more complex.
  • Costs are not based on the producer’s own costs; they are calculated by RMA, based on input prices from August 15-September 14. These include:
    • Variable inputs (diesel, NPK, interest rate)
    • Costs that are covered but do not change (seed, lubrication, select crop protection)
  • Note that land, rent and labor are not included.

Revenue and Margin Formula

    margin protection formula 

Dual-coverage delivers flexibility

  • Combining MP with other coverage options offers added flexibility.
    • You are able to base decisions on price guarantees in September, February and October. MP locks in the futures price in the fall, when the market typically rewards delaying sales.
    • You can purchase MP with either ARC or PLC.
    • MP is based on county yields, prices and inputs. This means indemnities are not paid until after USDA determines county yields – roughly six months or more after harvest.
  • If you have a claim on your individual RP policy, you receive that indemnity more promptly. But – you receive the higher of the two claims. Given a smaller “deductible” with a 95% policy, and the impact of the protection factor, MP may beat RP and you’ll receive the balance of the indemnity later.

Other ways MP and RP work together

  • MP offers higher coverage up to 95%.
  • MP does not cover prevent plant, replanting or quality adjustment; RP does.
  • RP and MP together provide peace of mind and protection for both individual risk protection and area coverage for the expected operating margin.
  • Analysis of history suggests an advantage over the long run to purchasing both.

Available to all qualifying producers regardless of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status.



Area-based plan.


Coverage 70% up to 95% of the trend-adjusted county yield.


Protection factors from 0.8 to 1.2. Hence, MP can pay up to $1.20 for every dollar of loss.


Highly subsidized premium benefit.

code of ethics 

A premium credit is applied to MP when purchased with an underlying policy such as RP.


Initial price discovery is August 15 – September 14.


Purchase deadline is September 30.

Grain Bin 

Uses the same harvest price as RP and Supplemental Coverage Option (SCO).

Margin Protection protects profits by locking in a margin guarantee. Our Farm Credit Services of America crop insurance team is here to help you work through your crop insurance decision.

Podcasts on Margin Protection

Members of our experienced crop insurance team discuss how crop insurance and marketing goals can work together to provide the best financial return.

Margin Protection for your 2023 Crop

Learn more about Margin Protection scenarios and why now is good time to take advantage of the current price environments for your 2023 crop.

Margin Protection Part 1

Learn more about how Margin Protection (MP) can provide coverage against an unexpected decrease in operating margin.

Margin Protection Part 2

Learn more about leveraging insurance products like Margin Protection to lock-in minimum revenue guarantees.

Margin Protection Part 3

Learn more about opportunities to take advantage of current price environments for your 2022 crop.

Why Work With Us For Crop Insurance?

Dedicated Specialists

They 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.

Highly Trained

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

Financial Expertise

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

Decision-Making Tools

Our proprietary Optimum tool analyzes federal and private insurance policies to find the best choice whatever your risk management goal.

"They've been excellent. Within minutes they called me back to get the claims process started."

Ryan & Amy

Grain & Beef Producers, Iowa

Ryan & Amy

Trigger Yield Calculator

Trigger yields assist producers with crop insurance and risk management decisions. Understanding what will trigger loss payments is an important part of choosing the correct level of crop insurance coverage.

The results provided by this tool are for estimation purposes only; actual loss triggers may vary. Contact your Farm Credit Services of America insurance officer for more information.


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Ready to Talk?

Contact us if you have questions or need more information. Fill out the form, or connect with your local office using the Office Locator.

FCSAmerica serves farmers, ranchers, agribusinesses and rural residents in Iowa, Nebraska, South Dakota and Wyoming. For inquiries outside this geography, use the Farm Credit Association Locator  to contact your local office.