🌾 How CLIP Works This Year — Simplified

CLIP is insurance that protects your farm’s income, not just your yields. It looks at the total dollars you’re expected to bring in from crops and livestock, and it steps in if your income drops.

Think of it as a safety net for your whole-farm revenue.

1. You choose the level of income you want to protect

You pick a coverage level—like 75%, 80%, or 85% of your expected income.

Example:
If your farm normally brings in $500,000 and you choose 80% coverage, CLIP protects $400,000 of that.

2. Your expected income is based on real numbers

CLIP uses:

Your approved yields
Expected market prices
Your livestock sales
Any other covered farm revenue

This gives you a total “expected income” for the year.

3. If your actual income drops below your coverage level, CLIP pays

A payment can trigger if:

Prices fall
Yields drop
Livestock revenue is lower
A combination of factors reduces your total income

It doesn’t matter why the income fell—CLIP looks at the final revenue number.

4. You still report production like normal

You’ll turn in your production and sales records at the end of the year so the insurance company can calculate your actual revenue.

5. CLIP works alongside your other crop insurance

It doesn’t replace RP, YP, or livestock policies.
It simply adds another layer of protection for your whole-farm income.

In short

CLIP protects the dollars your farm is expected to earn.
If your income drops, CLIP helps fill the gap so you can keep your operation stable.