Agricultural economists at the University of Illinois have been looking through decades of crop insurance data.
Todd Gleason reveals what the most used programs are, and why.
The data shows, from 1989 on, farmers in the state, for that matter across the nations, overwhelmingly chose to use crop insurance as a risk management tool, according to Illinois Extension ag economist Gary Schnitkey.
“Crop insurance is extensively used. It is used on over 85 percent of the acres for corn and soybeans in Illinois,” Schnitkey states. “That which is planted is insured, and the single most popular crop insurance product is RP.”
RP stands for Revenue Protection, and it is just one in a series of federal government-backed crop insurance choices farmers can make.
“What they like about RP is probably two things; the guaranteed price increases associated with RP, and they prefer farm level coverage to any sort of county level products,” he explains.
He says that it will be interesting to see if farmers choose to include any of the new add on crop insurance products that are coming in 2021. As to making RP the crop insurance product of choice, the ag economist says that he thinks that is the right move.
“That’s a good decision. RP is a very good product,” he adds. “It provides excellent protection and migrating to that makes perfect sense.”
Corn and soybean farmers will make the 2021 growing season crop insurance choice in March. This year that choice will include the Enhanced Coverage Option, or ECO. It works like SCO but is not subjected to the ARC/PLC decisions.
Related:
AFBF on this year’s payout of crop insurance coverage of key cash crops
Crop insurance is the cornerstone to protecting America’s food, fuel, and fiber
