Under the GRIP insurance plan, when is a payment made for revenue loss?

Under the GRIP (Group Risk Income Protection) insurance plan, a payment is made for revenue loss when the county revenue is below the trigger revenue. This means that the plan is designed to provide coverage based on the overall performance of the county rather than individual farm performance. The trigger revenue is pre-determined and takes into account historical data, and a payment is issued only when the actual revenue falls below this threshold.

This structure allows farmers to pool their risk with others in the same county, offering a level of protection against widespread loss due to factors like adverse weather or market fluctuations that affect all farmers in that area. The focus on county-level performance differentiates GRIP from other plans that may assess individual farm performance, thereby providing a safety net that reflects the economic conditions affecting the entire agricultural community within the county.