JJ Gouin/Getty Images Plus Choosing crop insurance coverage is one of the more important risk management decisions that farmers make each year.
The deadline to purchase crop insurance for corn and soybeans for the 2021 crop year is March 15. The crop insurance spring base prices for 2021 revenue protection and yield protection insurance policies have been established at $4.58 per bushel for corn and $11.87 per bushel for soybeans. The 2021 base price for corn is an increase of $.70 per bushel above the $3.88 per bushel Spring price in 2020. The 2021 soybean base price is a large increase of $2.70 per bushel above the 2020 spring price of $9.17 per bushel. The 2021 spring price corn is the highest since 2014 and the soybean base price is at the highest level since 2013.
Agricultural producers who haven t yet enrolled in the Agriculture Risk Coverage or Price Loss Coverage programs for 2021 must do so by March 15. The programs provide income support to
By Chris Bruynis, Extension Educator, Ohio State University Extension
The 2021 decision for making the crop insurance and farm bill decisions is all about risk management. With the recent increased crop prices and the volatility in the markets, crop insurance is expected to increase by about 50% to 60% this year compared to last year. So, with crop insurance more expensive and the choice between Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) unclear, the strategy to protect risk exposure becomes more interesting. In this article different strategies are outlined looking at ARC/PLC with Revenue Protection (RP), Supplemental Crop Option (SCO) and Enhanced Coverage Option (ECO).