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S Illinois | Then ECO isn't so cut and dry. It then comes down to how much of revenue guarantee do you need to feel comfortable and how expensive is that individual level of coverage. I like to look at ECO as coverage for price declines and the multi peril base policy as the yield guarantee. So the multi peril covers the individual farm yield loss and ECO covers if the insurance price guarantee declines. Basically ECO gives some protection in the years where you have an average crop with shallow price declines. Your base policy covers low yield and low price years.
Keep in mind I am in an area where 75% coverage level is/was the most common in corn as the higher coverage levels got expensive fast for the coverage. So ECO actually provided a cheaper alternative to protect price. | |
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Who's playing with ECO on insurance?