For the 2023 crop year, USDA’s Margin Protection (MP) offered area-based insurance against a decline in a county’s operating margin—the value of expected crop revenue minus certain input costs. A county result, not your farm’s own profit or loss, determined whether MP paid. MP could supplement Revenue Protection or Yield Protection, but availability and terms depended on the crop, county, and 2023 policy documents.
This is a historical explanation of 2023 coverage, not a current-year quote or recommendation. If you are considering coverage now, confirm current terms and deadlines with a crop insurance agent.
What Margin Protection covered
USDA’s Risk Management Agency (RMA) describes MP as area-based coverage for an unexpected decrease in operating margin: revenue less input costs. A decline in county yield, a fall in commodity prices, an increase in prices for certain inputs, or a combination of those changes could reduce the county’s margin. Coverage applied when the area-level loss exceeded the elected deductible, subject to the policy’s calculations and terms. RMA’s Margin Protection FAQ and plan materials explain the plan.
MP did not insure a producer’s exact yield, sale price, or input bill. Its calculation used county-level results, so the outcome for an individual farm could differ from its own financial outcome. RMA puts it plainly: “Because MP is area-based (average for a county), an individual farm may have a decrease in its margin but not receive an indemnity or vice-versa.”
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Does Margin Protection pay if your farm loses money?
Not necessarily. Your farm’s loss by itself does not determine an MP payment. The county-level margin must trigger an indemnity under the policy. A farm could lose margin without receiving an MP payment if the county result did not trigger coverage; conversely, an MP payment could occur even if the farm’s own margin did not fall.
This is the central distinction between area-based MP and coverage based on an individual producer’s insured yield or revenue: MP addresses a county result, not a guarantee that a particular operation will be made whole.
How the county margin and trigger were calculated
The 2023 policy calculation began with an expected margin based on expected revenue minus expected costs. The elected coverage level and protection factor were used to establish the trigger margin and liability. The policy then compared the county’s actual margin with the trigger to determine whether a covered loss occurred. The county’s result—not a producer’s own records of revenue and input costs—was the basis for MP.
RMA’s FAQ illustrates the liability arithmetic as follows: 175 bushels per acre × $4.00 per bushel × 90% coverage × 1.100 protection factor = $693 of insurance per acre. The example shows how expected county yield, projected price, coverage level, and protection factor are multiplied. It is not a 2023 quote, a personalized liability calculation, or a promised claim payment.
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For 2023, RMA’s projected-price bulletin supplied margin projected prices and volatility factors by crop, type, and location. Those values were used with projected input prices and expected county yield to derive expected margin, trigger margin, and liability. They were not universal prices. For example, the bulletin lists a 2023 margin projected price of $0.169 per pound and a volatility factor of 0.10 for rice, long-grain/no-type, in Louisiana, using the September Rice contract. That one entry should not be applied to other rice types, locations, or crop years. See the RMA 2023 Margin Protection projected-price bulletin for crop- and location-specific values.
Which crops and counties were eligible in 2023?
RMA’s general FAQ identifies corn, soybeans, rice, and wheat in select states and counties, not nationwide coverage for every producer. Its overview says corn was available in select counties in all states other than Alaska and Hawaii; soybeans in select counties across numerous states; rice in select counties in Arkansas, California, Louisiana, Mississippi, Missouri, and Texas; and wheat in select counties. The overview alone does not establish eligibility for a particular crop, type, and county.
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Check the applicable 2023 actuarial documents and crop-specific provisions, or ask an agent to verify the exact county and type. RMA’s policy index lists Plan 19-MP as applicable through 2023 and links the relevant documents. RMA’s Margin Protection policy page is the starting point for the plan materials.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How MP interacted with other coverage
RMA’s 2023 fact sheet described MP as coverage that could be purchased alongside Revenue Protection (RP) or Yield Protection (YP), subject to the applicable policy provisions. The two types of coverage address different bases: MP uses county-level margin results, while RP or YP coverage follows the terms of the individual crop policy. Having one does not make the other a guarantee against every farm-level loss.
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There was an important incompatibility: RMA says MP cannot be purchased for a crop in a county where the producer has Whole-Farm Revenue Protection (WFRP) or Micro Farm coverage for that same crop. Review the exact policies and county combination with an agent before treating MP as an add-on.
RMA later announced revised provisions in Plan 24-MP for 2024 and succeeding crop years. Later language clarifies that an MP holder cannot transfer a base policy to another provider or cancel it to obtain coverage from another provider. Do not assume that later provision describes the 2023 contract; consult the governing 2023 policy for that year. RMA’s policy index distinguishes the applicable plan documents.
2023 deadlines and what to verify
RMA’s 2023 fact sheet gave a September 30 sales closing date for corn, soybeans, and spring wheat. Rice dates varied by state and county. Those dates belong to the 2023 crop-year materials and are not current deadlines. Verify the applicable county’s sales closing date and crop-year documents before making any present-day decision. The RMA 2023 Margin Protection fact sheet provides the historical overview.
When reviewing MP with an agent, check the following for the relevant crop year:
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- The governing policy version and applicable county actuarial materials.
- The projected prices, projected input costs, expected county yield, and protection factor used in the calculation.
- The sales closing date and premium for your specific coverage.
- How MP coordinates with your RP or YP policy, and whether WFRP or Micro Farm coverage makes the same crop in the county ineligible.
RMA directs interested producers to contact a crop insurance agent for details. Find a crop insurance agent through RMA.
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