Crop and Livestock Income Protection (CLIP) Basics for Spring Crop Producers

By Walker Davis and Amy Hagerman

The Crop and Livestock Income Protection (CLIP) product, first offered in 2026, acts as an umbrella policy layered on top of your existing Revenue Protection (RP) policies, offering a higher coverage level across two or more different spring crops grown in the same county. Producers do still need to enroll in RP for each individual crop to be eligible for CLIP. RP policies trigger as they normally would, where CLIP triggers when combined revenues fall below the CLIP guarantee. 

In a year with a revenue loss, indemnities trigger in two stages. First, individual crop revenue losses still work as they normally would. Consider a producer who has both corn and grain sorghum in a single county that experiences losses for both crops. The producer would work with his or her crop insurance agent to report the loss for each crop individually. Second, after all RP policy production to count valuations are determined, the combined revenue to count of the CLIP insured commodities is compared to the CLIP guarantee. If there is a shortfall, CLIP pays the difference. Because CLIP can be set at a higher coverage level than your underlying RP, it may trigger even when neither individual RP policy does.

CLIP coverage levels run from 55% to 85%, capped at 25 points above your lowest individual RP policy coverage election. To show what this means in practice, consider a Garfield County, Oklahoma producer with 500 acres each of corn and grain sorghum, both under RP at 75% coverage—a common coverage level in this area. The producer’s cost of that base coverage and comparisons of three options are provided in Table 1: (1) increase the coverage level of individual RP policies, (2) adding CLIP umbrella policy on top of 75% coverage RP, and (3) adding a Supplemental Coverage Option (SCO) area coverage on top of 75% RP policies.