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S Illinois | SCO would sort of be like the old GRIP polices. You would be insuring from 86% down to whatever your multi peril coverage level, of the counties expected revenue. So if you have 75% base coverage, purchasing SCO gives you coverage from 75%-86% of the expected county revenue. If your farms yields follow the counties well, it is an ok product. If you think your county will be poor yielding but your farm will be better, SCO is a good idea. It's a cheaper way to get more coverage but that coverage is not a 1:1 match for your own farms yields. Its place seems to be the areas where individual RP coverage above 75% is prohibitively expensive and then it works better at the higher grain price levels also for the price coverage it provides.
To lessen the cost of SCO, one can elect to take a % of that coverage as well. So taking a 50% coverage means half the premium but also half the payment if there is one.
The purchase of SCO goes through your crop insurance, but PLC must be selected at the FSA office. | |
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Arc or PLC (Again)
