MSU experts offer guidance on crop insurance options
A farm business educator says the runup in crop prices is allowing farmers to select better risk management options for revenue protection this year.
“There’s an opportunity now to have a lot higher coverage guarantee then what we have normally.”
Roger Betz, who designed Michigan State University’s Farm Bill Analyzer, tells Brownfield farmers first need to decide between the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) crop insurance programs. Those who choose the PLC option are also able to sign up for the Supplemental Coverage Option (SCO) which protects up to 86 percent of crop revenues.
New this year is the Enhanced Coverage Option which is available to all farmers regardless of the risk management program they choose.
“You can have either a 90 percent coverage or 95 percent coverage sort of on top if you will the SCO,” he says.
While decisions are farm and location specific, MSU is likely to suggest the PLC program on wheat acres, and also on corn acres along with SCO, and soybean selections depend on the level of risk a farmer wants since payments are unlikely.
MSU is also offering a webinar series through the beginning of February to help farmers signing up for crop insurance this year to explore risk options.