WHICH FARM PROGRAM WILL WORK BEST FOR YOU?
The latest FarmDoc Daily, written by Nick Paulsen, is an important read. When farm bill sign up finally occurs, you will have choices about signing up for farm programs or signing up for supplemental crop insurance. Which option will be best for you, your farm, and your family?
Dr. Paulsen’s analysis is a thorough (although complicated – but what government programs aren’t?) analysis of the probability that you might receive payments for your farms under each of the various options. These probabilities change from county to county due to the county level trigger included in the new farm bill.
Still, most Illinois corn farmers will find that the Supplemental Coverage Option, coupled with revenue insurance, will have a greater likelihood of payments.
Based on historical price and yield data, the likelihood of County Ag Risk Coverage program payments tends to exceed that of Supplemental Coverage Option payments when coupled with yield insurance. However, Supplemental Coverage Option payments when coupled with revenue insurance have a greater historical likelihood of being triggered than the County Ag Risk Coverage program.
Click here to read the entire article, which includes lots of analysis and maps of counties to help you understand your options.
Remember, your crop insurance agents and FSA office employees may not be completely trained in all of these options. Although rulemaking is not yet completed and it is difficult to predict all the ins and outs that might affect your farm program choices, it is worth your time to educate yourself about the options available before making your appointment to sign up this fall or winter.
Visit FarmDoc Daily for articles about these and other farm analysis that could impact your farm.
For a list of all the FarmDoc Daily articles written about Farm Bill 2014, click here.