A Few Factors to Consider in Crop Insurance Decisions

With the deadline to purchase crop insurance less than two weeks away, a lot of farmers are likely making last-minute adjustments to their plans, especially with the release late last week of spring base prices for revenue and yield protection policies. There are a lot of product options — including new ones like the Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO) — worth considering this year, especially with strong price guarantees and major acreage expectations. Higher coverage levels offer additional assurance, while specific policy options can help ensure you’re covering exactly what you should and nothing that you don’t need. Regardless of your decisions this spring, it’s important to consider them in the broader context of farm risk management, especially “given the potentially higher profit margins for crop production in 2021,” one analyst said Tuesday. See more analysis to make an informed decision.