It executes indemnity payments only when the average county revenue for the insured crop falls below the revenue chosen by the farmer, i.e., the insured farmer is paid in the event that the county average per-acre revenue falls below the insured’s county trigger revenue. The trigger revenue is calculated by multiplying the GRIP price by the expected county yield and then multiplying this by 90, 85, 80, 75, or 70 percent (based on the chosen protection). The GRIP price is the average CBOT futures price for the five business days prior to March 1.
