USDA’s National Agriculture Statistics Service (NASS) released county yield data for 2021. This data provides indicators of the chance of some crop-insurance or government payment programs, though it’s important to note it is not the actual yield data used to calculate Agriculture Risk Coverage (ARC-CO), Supplemental Coverage (SCO) or the Enhanced Coverage Option (ECO), just an indicator. Specific to this study and the state of Illinois, the data revealed Illinois farmers should not expect ARC-CO payments at the county level for corn or soybeans. Though the Enhanced Coverage Option (ECO) at the 95% coverage level could make payments for corn eligible in some Northwest Illinois counties. ECO-95% could also pay in several Illinois counties on soybeans.
From a national level, the drought sweeping the Great Plains is likely to result in payments in some counties in those states. Many counties in North Dakota, South Dakota and Minnesota, with actual yields dropping below 60% of expected, may be eligible for ARC-CO, SCO and ECO payments. However, SCO and ECO payment amounts are not known as USDA’s Risk Management Agency (RMA) has not released their county yield data. The data used in this study will differ from NASS.
Reference: Schnitkey, G., C. Zulauf, N. Paulson, K. Swanson and J. Baltz. “2021 Corn and Soybean Yields: Implications for Crop Insurance and Commodity Title payments.” farmdoc daily (12):37, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, March 22, 2022.
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