RP vs. RP-HPE Insurance Decision: Premium, Cash Flow, and Forward Contracting
The decision between RP, crop revenue insurance, and RP-HPE, crop revenue insurance without the harvest price option (HPO) is discussed. RP-HPE has a lower premium and thus a lower cash…
View ArticleSafety Nets from Crop Insurance in 2023
The Risk Management Agency (RMA) has released 2023 projected prices for crop insurance. For Illinois and most Midwest states, projected prices are $5.91 per bushel for corn and $13.76 for…
View ArticleIs Loss Ratio a Sufficient Measure of Crop Insurance Performance?
US crop insurance is a risk management program. It is also a public payment program since premiums are subsidized. Performance is thus examined using a common measure of insurance performance,…
View ArticleAre Crop Insurance Net Indemnities and Commodity Program Payments...
The analysis discussed in the April 5 farmdoc daily found that payments to farmers by programs other than commodity programs and crop insurance have been countercyclical to US net cash…
View ArticleComparing Crop Insurance Net Farm Indemnities and Crop Production Profits
We compare net crop insurance indemnities paid to farmers with private market net returns from producing barley, corn, cotton, oats, peanuts, rice, sorghum, soybeans, and wheat over the 2009-2022 crop…
View ArticleThe Importance of Insurance Unit in Crop Insurance Policy Debates
This article explores the important role of the choice of crop insurance unit in the US crop insurance program. Farmers can choose from 4 insurance units: basic, optional, enterprise, and…
View ArticleFrequency of SCO and ECO Payments in Illinois
The payment frequency on the Supplemental Coverage (SCO) and Enhanced Coverage Options (ECO) has been lower than expected from 2015 to 2022. Over all Illinois counties in that time frame, the frequency...
View ArticlePotential Crop Insurance Payments for 2023
In today's farmdoc daily article, we examine how the price discovery period for the harvest prices for corn and soybeans is currently underway. Through October 9th, settlement prices for the harvest...
View Article2023 Harvest Prices and Revenue Insurance Payments for Corn and Soybeans
The 2023 Harvest Prices are now set at $4.88 for corn and $12.84 for soybeans. This is a 17% decline from the $5.91 projected price for corn, and a 7% decline from the $13.76 projected price for...
View ArticleUnderstanding the Relationship between Loss Ratios and Crop Insurance Subsidies
The purpose of this article is to document the relationship between actual subsidy rates and loss ratios in crop insurance products, and to provide implications for policy initiatives that are…
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