| Gary Schnitkey |
| FEFO 09-17, 10/29/2009 |
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Abstract
Wheat plantings have been delayed this fall, again bringing up decisions related to crop insurance. APH, CRC, and RA policies have late planting and prevented planting provisions.
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| Late Planting and Crop Insurance
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| Gary Schnitkey |
| FEFO 09-09, 6/1/2009 |
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Abstract
Adverse planting conditions this spring has resulted in many crop insurance questions related to replant, prevented planting, and late planting provisions in crop insurance contracts. This paper provides information on these questions.
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| GRIP Provides Superior Price Protection to CRC or RA
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| Gary Schnitkey |
| FEFO 09-05, 3/9/2009 |
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Abstract
If lower prices are a primary concern, Group Risk Income Plan (GRIP) at a 90% coverage level will provide superior protection compared to Crop Revenue Coverage (CRC) or Revenue Assurance (RA).
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| The ACRE Program Decision and Some Illustrative Examples
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| Nicolas D. Paulson |
| FEFO 09-04, 2/27/2009 |
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Abstract
A fundamental change in commodity title programs in the 2008 Farm Bill resulted in the creation of the new Average Crop Revenue Election Program (ACRE).
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| Increased Probabilities of Crop Insurance Payments
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| Gary Schnitkey and Bruce Sherrick |
| FEFO 08-16, 10/15/2008 |
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Abstract
Recent commodity price declines have increased the probability that crop insurance products insuring revenue will make payments.
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| Late Planting and Crop Insurance Decisions
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| Gary Schnitkey |
| FEFO 08-11, 6/6/2008 |
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Abstract
Crop insurance issues related to late planting of crops are addressed in these resources.
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Click here for Adobe's PDF format. Click here for HTML format.
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| Impacts of CRC Price Limits on the Value of CRC Relative to RA
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| Gary Schnitkey |
| FEFO 08-04, 2/22/2008 |
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Abstract
CRC has price limits when calculating crop revenue. In 2008, there is over a 30% chance that harvest prices will exceed CRC limits for corn. Higher chances of exceeding CRC limits increase the value of RA relative to CRC. In corn, RA is worth about $11 than CRC at a 75% coverage level.
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| The Biotech Yield Endorsement (BYE)
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| Gary Schnitkey |
| FEFO 08-03, 1/30/2008 |
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Abstract
The Biotech Yield Endorsement (BYE) will allow farmers to received discounts on crop insurance for grain corn grown in Illinois, Indiana, Iowa, and Minnesota. To receive a discount, farmers must plant hybrids containing Monsanto-based triple-stack traits.
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| Crop Insurance Decisions Associated with Wheat Failure
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| Gary Schnitkey |
| FEFO 07-08, 4/23/2007 |
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Abstract
Recent freezes have harmed wheat causing some farmers to consider destroying wheat and planting another crop. For many farmers, planting another crop will have crop insurance implications. This article covers these implication.
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| Farmland Price Increases Continue: Are They in Line with Farmland Returns?
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| Gary Schnitkey |
| FEFO 07-06, 3/30/2007 |
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Abstract
Farmland prices in Illinois continue to increase, primarily because ethanol demands have led to higher commodity prices and higher farmland returns. It does not appear that higher farmland prices are out of line with farmland returns in east central Illinois.
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| GRIP in 2007
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| Gary Schnitkey, and Bruce Sherrick |
| FEFO 07-04, 2/28/2007 |
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Abstract
The structure of GRIP has not changed between 2006 and 2007. In most Illinois counties, GRIP in 2007 will be expected to pay out more in indemnity payments than farmers pay in premiums
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| Higher Prices and Crop Insurance: A Double-Edged Sword
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| Gary Schnitkey |
| FEFO 07-02, 1/19/2007 |
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Abstract
Premiums for revenue insurance products will be 40% or more higher in 2007 than in 2006. On many farms, it will be possible to insure revenues at levels assuring profits, a situation that occurring rarely when using crop insurance.
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| 2006 Planting Decisions Given the March Planting Intentions Report
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| Gary Schnitkey |
| FEFO 06-06, 04/06/2006 |
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Abstract
Revised price expectations may cause some farmers to revisit 2006 planting decisions, perhaps shifting some acres from soybeans to corn. Budgeting to compare crop profitability is a useful exercise. Consideration should be given to crop insurance payments as there is a high probability thatinsurance will make payments.
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| Choice of Revenue Products: Base and Harvest Prices
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| Gary Schnitkey |
| FEFO 06-04, 03/06/2006 |
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Abstract
Perspective on decisions to take revenue crop insurance products with or without a guarantee increases is provided by evaluating base and harvest prices for corn and soybeans from 1972 through 2005.
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| GRP and GRIP Payments: Preliminary 2005 Estimates and Historical GRIP Payments
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| Gary Schnitkey |
| FEFO 06-03, 02/27/2006 |
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Abstract
This publication shows information useful in calculating GRP and GRIP payments in 2005 for all Illinois counties. Also shown are GRIP payments from 1999 through 2005.
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| Expected Yield Increases and Choice between Group and Farm Crop Insurance
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| Gary Schnitkey |
| FEFO 06-02, 02/13/2006 |
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Abstract
The Risk Management Agency (RMA) increased the expected yields used to calculate guarantees for Group Risk Plan (GRP) and Group Risk Income Plan (GRIP). Expected yield increases make group products more attractive and may cause some farmers to switch to group products from farm product.
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| Premium Reduction Plans for Crop Insurance
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| Gary Schnitkey |
| FEFO 06-01, 01/23/2006 |
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Abstract
The Risk Management Agency (RMA) allows insurance companies to offer Premium Reduction Plans (PRPs) on 2006 crop insurance policies. The amount, if any, of premium reductions will not be known until after 2006. Reductions may not be paid until 2008.
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| Soybean Rust Considerations in Share-rent Arrangements and in Crop Insurance
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| Gary Schnitkey |
| FEFO 05-06, 03/28/2005 |
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Abstract
Some individuals have questioned how fungicide costs should be shared under crop-share arrangements. In addition, significant discussion has ensued concerning crop insurance coverage for rust-induced losses. These issues are covered in the following sections.
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| Group Risk Income Plans Likely to Pay in Many Counties for 2004 Crops
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| Gary Schnitkey |
| FEFO 05-03, 02/02/2005 |
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Abstract
Some people have asked whether group products will make payments for the 2004 cropping year. Group products base insurance payments on county yields calculated by the National Agricultural Statistical Service (NASS), an agency of the U.S. Department of Agriculture. NASS will not release 2004 county yields until March or April of 2005. Hence, payments from group products will not be known until March or April.
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| 2004 Crop Insurance Changes And Historical Crop Insurance Use
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| Gary Schnitkey |
| FEFO 04-18, 11/01/2004 |
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Abstract
Use of federally-subsidized, multi-peril crop insurance products in 2004 is described in this paper. In addition, changes in crop insurance use from 1990 through 2004 are presented. This information allows farmers to compare their crop insurance programs to Illinois averages.
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| Insurance Premium Higher In 2004
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| Gary Schnitkey |
| FEFO 04-03, 02/19/2004 |
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Abstract
Premiums for most crop insurance products will be higher in 2004 compared to 2003. Some premiums will increase by over 50%.
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| Grip-Hr: An Analysis Of Returns And Risks
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| Gary Schnitkey |
| FEFO 04-02, 02/11/2004 |
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Abstract
Group Risk Income Plan (GRIP) is a revenue insurance that insures county revenue. In 2004, a harvest revenue option was added to GRIP. At the county level, GRIP with the harvest revenue option (GRIP-HR) is conceptually similar to farm-level products that have guarantee increase provisions (i.e., Crop Revenue Coverage (CRC) or Revenue Assurance (RA) with a harvest revenue option). How GRIP-HR works is described in a previous Illinois Farm Economics: Facts and Opinions entitled "Group Crop Insurance Plans". This previous article also details the working of the other two group products (Group Risk Plan (GRP) and Group Risk Income Plan without the Harvest Revenue option (GRIP-NoHR)). The purpose of this Facts and Opinions article is to quantify the returns and risks associated with GRIP-HR.
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| Group Crop Insurance Plans
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| Gary Schnitkey |
| FEFO 04-01, 01/26/2004 |
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Abstract
A new group crop insurance product was introduced in 2004, bringing the total number of group products to three. These three are:
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| Revenue Guarantees on Crop Insurance Products
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| Gary Schnitkey |
| FEFO 03-02, 01/31/2003 |
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Abstract
Revenue Assurance (RA), Crop Revenue Coverage (CRC), and Income Protection (IP) are multi-peril crop insurances that provide revenue guarantees. When indemnified revenue falls below the revenue guarantee, these revenue products make payments equal to revenue guarantee minus indemnified revenue. Payments bring revenue back up to the level of the revenue guarantee.
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| 2002 IFARM Insurance Evaluator
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| Gary Schnitkey |
| FEFO 02-05, 03/11/2002 |
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Abstract
The 2002 version of the iFARM Crop Insurance Evaluator is available for use on farmdoc. The Evaluator shows risks and returns from five different crop insurance products: Actual Production History (APH), Revenue Assurance with the Base Price option (RA-BP), Crop Revenue Coverage (CRC), Group Risk Plan (GRP), and Group Risk Income Plan (GRIP) insurance.
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| 2002 Crop Insurance Decisions
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| Gary Schnitkey |
| FEFO 02-04, 02/22/2002 |
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Abstract
Multi-peril products available for insuring crops in Illinois during 2002 have not changed from 2001. Moreover, subsidy levels have not changed, causing 2002 premiums to be roughly similar to 2001 premiums. Hence, the criteria for choosing between crop insurance products have not changed between 2002 and 2001. Choices or multi-peril insurance products can be divided into four categories.
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| 2002 IFARM Premium Calculator
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| Gary Schnitkey |
| FEFO 02-03, 02/08/2002 |
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Abstract
The 2002 version of the IFARM premium calculator has been released for use. This tool calculates per acre insurance premiums for the following insurances: Actual Production History (APH), Revenue Assurance with the base price option (RA-BP), Crop Revenue Coverage (CRC), Group Risk Plan (GRP), and Group Risk Income Plan (GRIP). Premiums can be calculated for corn, soybeans, wheat, and grain sorghum in counties of twelve states located in the greater Corn Belt. The Premium Calculator is in the crop insurance section of farmdoc (http://www.farmdoc.uiuc.edu/cropins/).
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| Risks, Pre-Harvest Hedging, and Crop Insurance
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| Gary Schnitkey |
| FEFO 01-11, 05/17/2001 |
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Abstract
Recently, research has examined risk reductions associated with levels of pre-harvest hedging for different crop insurance products. In general, modest levels of hedging decrease risk. In the example shown in figure 1, hedging up to 15 percent of expected production reduces risk. Then there is a range where risk levels change very little. In figure 1, this occurs between 15 and 65 percent of expected production. Hedging increases risk after some point (65 percent of expected production in figure 1).
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| Tools for Making Crop Insurance Decisions
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| Gary Schnitkey |
| FEFO 01-05, 03/06/2001 |
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Abstract
Two tools for making crop insurance decisions are available at farmdoc, a web site maintained in the Department of Agricultural and Consumer Economics (www.farmdoc.uiuc.edu). These tools are located in farmdoc's crop insurance section and are 1) a Premium Calculator and 2) a Crop Insurance Evaluator.
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| Crop Insurance and Marketing Decisions
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| Gary Schnitkey |
| FEFO 01-04, 02/20/2001 |
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Abstract
The deadline for signing up for crop insurance is March 15th. By this date, farmers must choose between one of the six crop insurance products available in Illinois: Actual Production History (APH), Revenue Assurance (RA), Income Protection (IP), Crop Revenue Coverage (CRC), Group Risk Plan (GRP), and Group Risk Income Plan (GRIP).
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