02/14/25 Afternoon CommStock Report – Lower Cost for Higher Coverage…???

Crop insurance decisions are often a back burner item that people would rather avoid, so they often end up just carbon copying the prior year. Each and every year there are considerations to be made and we shouldn’t just be running through a tunnel with a blindfold on, hoping that we reach the other end unscathed. Used properly, crop insurance can provide one the most useful tools for marketing decisions and risk management for the entire marketing year. Keep in mind that products offered through the federal crop insurance program are the ONLY vehicles available that guarantee revenue. For the bulk of the Corn Belt, 85% revenue protection is the product of choice, particularly with low market values. Now how can we tweak our coverage to try and maximize the basically breakeven price that we are setting this spring?   Every crop year there are changes being made to Multi-Peril Crop Insurance coverages. Often times these changes center around the government subsidies that accompany them. This is one of those years where they have made a significant subsidy change to one of the available add-ons, and it was actually to the benefit of the producer. ECO (Enhanced Coverage Option) is…