When you sign up for federal crop insurance or revenue protection this year, think long-term.
The 2014 safety net for crop revenue created by the just-passed farm bill has some nuances that should change how you think about the programs for which you sign up soon, according to Ohio State University ag economist Carl Zulauf. The paper you sign this year won't just cover the 2014 crop, but reach further down the road.
"The decision, to be made in 2014, covers 5 crop years, 2014-18. It is not a one year decision," Zulauf says in a university report. "The 2014 farm bill encourages farmers to think strategically about their farms through at least 2018. An important strategic risk management question is the ability of a farm to withstand multiple years of low farm prices and revenue. Managing multiple-year risk involves a set of interrelated considerations, including the expected path of prices and revenue until 2018. The multiple year nature of this assessment points to the value of consulting decision calculators.
"Expectations about prices over the 2014-18 crop years will likely be an important consideration. Expectation that market price will stay above the Price Loss Coverage (PLC) reference price in most years will likely lead to an initial look at ARC. In contrast, expectation that market price will be below the PLC reference price in most years will likely lead to an initial look at PLC," Zulauf adds.
Source - http://www.agriculture.com/
When you sign up for federal crop insurance or revenue protection this year, think long-term. The 2014 safety net for crop revenue created by the just-passed farm bill has some nuances that should change how you think about the programs for which you sign up soon. The paper you sign this year won't just cover the 2014 crop, but reach further down the road.USA - Take a new approach with crop insurance
