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PLC+SCO
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McHusker
Posted 12/18/2014 07:48 (#4248279 - in reply to #4247887)
Subject: RE: Before I signed up for PLC


Nebraska aka the boondocks
here is my thing about IC. Lets say your avg yield is 230, which here is way over the county, which is around 185 here and varies little year to year. So you go through all the calcs and figure your guarantee. Looks good right!! Then you pop out a yield, which you would expect in a good year of 250-260, like this year. So you hit that gross with 65% and then you take a hit from the high yield under the yearly formula. From my understanding, the high yields will hurt IC this year. If there was no penalty, like under ARC CO for growing a really good crop, I might agree, so under this example you have to overcome the 65%, and then the high yield, which is figured into your guarantee. In reality, or IMO, these gross guarantee number don't mean a thing, it is the "probability of collecting a high % of the 10% lid!!!" From what I can tell there is a lot higher probability of collecting a larger check under CO. As for "what if you get hailed out?" then I guess that is what production hail is for.
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