Under both revenue protection plans, what limits the upside potential for farmers?

In revenue protection plans, the potential for increased income that a farmer might achieve during the growing season is often capped by the stipulation that the harvest price cannot exceed 200% of the projected price. This means that while farmers can benefit from increased market prices, there is a ceiling imposed that limits how much revenue they can actually receive under their insurance coverage. The projected price is determined before the planting season and serves as a basis for insurance calculations. If the harvest price becomes exceedingly high, the insurance will not provide additional benefits beyond the specified maximum, thereby limiting the potential revenue that could be realized from especially favorable market conditions.

This structure is designed to balance the risk for the insurer while still providing a safety net for farmers against losses due to revenue declines. It ensures that while farmers can take advantage of favorable market conditions to a certain extent, there are protections in place to manage the overall exposure for insurers.