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| Milks,
If you buy APH, I'd put production hail/wind on it. This gives you a very high guarantee for two perils, and not much expense.
However, I commonly find that a 10% lower CRC/RA policy will usually out perform a higher level MPCI policy over time. This is because more often than not the price is lower in the fall, meaning I have more bushels guaranteed with revenue coverage. For example, if I buy a 75% revenue coverage, with the spring price beginning at $3.99, if the fall price equals $3.59, my 75% revenue coverage now guarantees me 85% of my aph (because of price decline).
In the attached example, all three optional unit CRC policies "outperform" (cost less after indemnities) any level of MPCI. The reason the 70% CRC policy is even paying, when the 85% MPCI is not, is due to price decline in a given year. This is also another "cheap" GRIP premium county.
my opinions,
Rob
Edited by robheyen 3/7/2010 08:05
Attachments
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 Pipestone MN CRN example.pdf (35KB - 151 downloads)
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Crop Insurance APH or CRC
