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S Illinois | Premium cost. ECO at 44% subsidization rate and SCO at subsidized at 51% mean higher premiums. An example last year in a higher variability county, 80%EU corn and SCO ran $25. ECO on top of that is likely to run $50 especially with higher volatility come spring. Thats a strong premium for counties where expected yield averages are in that 150-170 bu range. With cost and payout likely hood, its practically a no brainer in central and northern IL. In S IL is becomes more of a question of "can one insure their way to profitability".
Payout years for 3 example IL counties: https://farmdocdaily.illinois.edu/2020/12/years-in-which-enhance-cov...
IL county payout probability at the SCO, ECO-90, ECO-95: https://farmdocdaily.illinois.edu/2020/12/historical-analysis-of-the... | |
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ARC-co verses PLC
