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| I agree with ARC Co on soybeans, as PLC trigger of $8.40 is so far away. However on corn, we are not as far away from the $3.70 trigger.
Here is another way to look at ARC CO, PLC and its relationship to crop insurance. When I buy an RP policy (with the harvest option) I am getting a yield guarantee plus a revenue guarantee.
When I elect ARC Co, I am getting another revenue guarantee (already had it with RP)
When I elect PLC, I am getting a pure price guarantee.
So, if I chose RP plus PLC, I am getting a nice three legged stool of yield guarantee, revenue guarantee, plus price guarantee.
If I chose RP plus ARC Co, I am getting a yield guarantee, plus two overlapping revenue guarantees.
I think purely from a risk management standpoint I prefer RP plus PLC.
Like Steve, I don't think (hope) either program will pay, and that is good! | |
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ARC/PLC and Crop Insurance
