|
| Just for clarification (maybe this has already been said, not sure), yes it is cheaper but you are insuring one dollar amount for your WHOLE operation, all commodities combined. With MPCI you insure per unit or per crop/county if enterprise units. In my area where soil types vary a lot and there is some irrigated, some dryland, chances of payout for WFRP are much less. Poor hailed, greensnaped, drought corn could be made up for by soybeans in another county, cattle, hogs, etc doing well and you get no indemnity payout. The 80% subsidy is only at 75% coverage and lower. Subsidy at 85% coverage is 56% which is in the ballpark of subsidy for an MPCI policy. Subsidy helps some, but by far the main reason it is cheap is because likelyhood of payout is much less. Having said that, as stated earlier you can still purchase MPCI with the WFRP on top. If I had a bunch of crop forward contracted at high prices or was an organic farmer I would take a hard look at it. | |
|
Whole farm rev protection policies
