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| Unfortunately, due to pay go, (funding issue), new farm bill, and other problems, it looks like the combo policies are a long way off, or dead in the water. While still on the drawing board, the prevalent idea I was aware of was a hybrid between CRC and RA, where a cap and cup caused coverage to lessen indemnity on a scale. Example, if $1.50 is the cap/cup, $1.60 = 95% indemnity, $1.70 = 90%, etc etc.
I think CRC needs to set limits (if we must have limits) by percent, not specific dollar amounts. When corn spring price was $2.50, the $1.50 limit meant about 160% increase or decrease in price before the limit was reached. With $5.00, that same percent limit would mean around $8.00 and $2.00 high and low limits.
If you think about it, CRC (and many states only have CRC, including PA and
WI) is taking in proportionally huge premiums, while carrying less risk, due to $1.50 limits being much smaller percent relationship to premium.
Rob | |
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CRC vs RA
