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S Illinois | The crop insurance system would collapse with no subsidy. And no you couldn’t afford the premiums or at least without massive changes in what’s actually covered. Right now an at the money CZ26 put is roughly 30 cents. With a 200 APH and 75% coverage level, the market is saying it will cost you $45/acre to cover the price risk on that 150bu guarantee.
Edit: Now I will grant that my calculation above isn’t perfect and very simple because most take revenue so it’s not a straight option value calculation on a set amount of bushels with regard to risk pricing. But the farmers premium portion plus government subsidy amount is relatively close to the market based risk valuation.
Edited by w1891 2/13/2026 08:51
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Do farmers get subsidized crop insurance?