That is a very good question. If you watch Art Barnaby's video that I have a link to in a post above (Insurance Workshop Video - click on "view" ) will help with that answer. I think, if I understand him right, the put and call options that are included within the insurance are cheaper than what could be purchased in CBOT options. They do not cover exactly the same thing since high yields can reduce coverage (whereas in a CBOT put or call the bushels are fixed) but you still could not afford to purchase the options as cheaply.

Tell me if you interpret him differently. He is speaking to crop insurance people so a little of it is somewhat over my head or at least is more than maybe I need to know but I think I get the gist of it. If I understand him correctly the more you move from APH, to enterprise units to GRIP it becomes a bigger portion of price guarantee and a lesser of yield.

John