Source: Gary Schnitkey, FARM DOC DAILY, UNIV. OF ILLINOIS, 1/24/17


This year, downside price risk on soybeans is a larger concern than usual. For those farmers who are particularly concerned about downside price risk, Area Risk Protection (ARP) at the 90% coverage level may be a good alternative. For most farmers, this would result in a shift from Revenue Protection (RP) to ARP. Using ARP allows moving to a higher coverage level than RP. However, ARP uses county yields in its indemnification process rather than farm yields.

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