With the recent Russian invasion of Ukraine, farmers should consider revenue protection crop insurance at a high level, according to agricultural economists on the University of Illinois farmdoc website. The possibility of higher harvest prices is increased. This increases the value of the price guarantee aspect of revenue protection crop insurance. The spring price was already set in February.
The economists explain combining revenue protection at high coverage levels with the enhanced coverage option (ECO) and supplemental coverage options (SCO) offers more protection at higher crop insurance premium levels. Farmers concerned about the high premium costs can use revenue protection with the harvest price exclusion and ECO. Farmers are warned if they purchase the revenue protection with harvest price exclusion, the guarantee will not increase.
Any crop enrolled in ARC is not eligible for SCO coverage on that farm. Farmers can purchase ECO regardless of their ARC/PLC decision. The economists note that higher prices mean less chance of an ARC or PLC payment. The deadline for making the ARC/PLC election and enrollment and crop insurance sales deadline is March 15.
