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Crop Insurance thoughts
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tom
Posted 2/13/2021 19:33 (#8830175)
Subject: Crop Insurance thoughts


Been thinking about crop insurance from an "investment" or maybe more accurately "gambling" point of view. I seem to remember that the revenue products at 65% or 70% are the most highly subsidized by the government. This would make them the best ones to purchase from the point of view of getting more than your insurance investment back over a career of policy buying. In another thread it mentions SCO and ECO are heavily subsidized. I don't believe any of the hail or wind policies are subsidized. I assume they are sold from an actuarially sound point of view, where they are sold to create profit over the long term for the seller. My question with all of this is, what would be the most heavily subsidized and therefore, most likely to pay more than the net cost to the producer policies out there for corn and beans. It seems these would be the best policies to purchase.
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