Crop and Livestock Income Protection (CLIP)
Expanded Revenue Protection for Farms with Multiple Crops
If you insured at least two qualifying spring-planted RP crops (of at least 10% of CLIP liability each), CLIP helps close the deductible gap and boosts your coverage up to a maximum of 85 percent level.
This program gives growers a simplified way to protect more of their operation’s revenue without juggling multiple endorsements.
CLIP Program Highlights
- Works with HIP-WI, ECO, and MCO
- Continuous policy unless cancelled
- No separate acreage, head count, or production reporting
- Applies as one combined CLIP unit across all covered crops
- AIP must pay CLIP indemnities within 30 days after RP production reporting is complete
Why CLIP?
CLIP fills the “coverage gap” between your RP coverage levels and the 85 percent protection cap. Instead of managing several add-ons crop by crop, CLIP creates one combined revenue layer across your choice of eligible crops.
Think of it as adding a unified shield over your operation when markets drop or yields fall.
What Does CLIP Cover?
CLIP adds protection against the same insured causes of loss covered by your underlying RP policies, including:
- Adverse weather
- Natural disasters
- Price declines
- Yield losses
CLIP does not provide separate quality adjustments. Those come directly from your RP policies.
What Doesn’t CLIP Allow?
CLIP cannot be paired with:
- Yield Protection
- Revenue Protection with Harvest Price Exclusion
- SCO
- STAX
- PACE
- MP
- Malting Barley Endorsement
- Prevented planting payments for CLIP itself
Who is Eligible?
You may qualify for CLIP if:
- You have at least two spring RP crops insured in the same county
- Each eligible crop has at least 10 percent of the total RP liability
- All underlying RP policies are written with the same AIP and agency
- The crops are included on the actuarial documents for CLIP availability
CLIP is not available for CAT coverage, fall-planted crops, or policies using excluded endorsements like SCO, STAX, MP, PACE, or the Malting Barley Endorsement.
CLIP is available in most counties in North Dakota, South Dakota, Nebraska, Colorado, Kansas, Oklahoma, Texas, Arkansas, Louisiana, Mississippi, Tennessee, Alabama, and Georgia.
How are Premiums Calculated?
Premium is based on:
- The difference between your CLIP coverage level and each RP coverage level
- Approved yields
- Acres or head insured
- Projected prices
- Your share percentage
- One single CLIP premium rate applied to the combined guarantee
There is one administrative fee for the entire CLIP policy.
How Do Claims Work?
- CLIP claims are paid after all underlying RP production counts are finalized.
- Your CLIP indemnity equals:
RP guarantee + CLIP guarantee – RP production value – any RP indemnities already paid - This ensures CLIP only covers the “remaining gap” after RP settles.