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Risk management decisions ahead


Weather extremes and fewer ad hoc payments make ARC, PLC insurance decisions more important for ‘21.
Government payments made up a much higher portion of farm income for the 2020 crop year, and it’s likely that won’t repeat in 2021. So, you have some important decisions to make this spring.
More than $5 billion in government payments will go out to producers who signed up for 2019 and 2020 crop year commodity programs. Federal crop insurance provided more than $113 billion in total coverage and to date has paid out over $5.8 billion indemnities for the 2020 crop year.
Ben Brown, senior research associate at the University of Missouri-Colombia, says it is important for producers to consider individual risk management goals as it relates to federal program choices. Is your goal to maximize revenue, or provide the highest level of risk protection? People often get upset if they don’t receive payments or chose a program that paid them early but failed later, ....

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