What does RPHPE NOT protect against?

RPHPE, or Revenue Protection with the Harvest Price Exclusion, focuses on protecting against revenue losses primarily caused by yield decreases due to specific natural events such as drought, flood, or pest damage. It covers losses from crop diseases and insect damage, as they affect the actual yield of the crop.

When it comes to price increases, RPHPE is formulated to protect against revenue declines due to lower yields rather than providing a safety net for increasing market prices. Thus, if prices rise but yields remain the same, RPHPE would not cover any loss associated with the increased price; it only functions in the context of protecting against changes in crop yield. This distinction is crucial for understanding the bounds of protection RPHPE provides.

In contrast, options related to crop diseases, yield loss due to drought, and loss due to insect damage align with the specific types of risk that RPHPE is designed to mitigate, making them a part of the coverage offered under this policy.