Area-Based Crop Insurance For Farmers
A widely discussed topic in crop insurance is the Enhanced Coverage Option plan. This area-based plan provides an additional layer of protection for farmers. Steve Hashe, veteran crop insurance advisor and owner of Midwest Ag Group, explains how this option can benefit farmers.
“With a higher subsidy rate, I think that producers need to study it, ask questions and to kind of look at their county and to see how it would have affected their county in the past, because your agent should be able to help you look back and see the likelihood of a payment in the past, and that’s part of the quoting process, and we can look back to say, Okay, this is paid the last three out of five years, or whatever, and it just gives a guy a way of looking back to see how it would have worked in the past.
Although farmers can’t predict the future with larger subsidies, how she says it’s worth looking into.
“Still have your your same underlying policy that you’ve always had, and that’ll pay for a replant or prevent plant or a revenue claim. But ECO is a little bit different, and it’s got a higher band of coverage, but it could pay out really well if the right things happen to make the policy engage so I encourage people to learn about it.”
Veteran crop advisor Steve Hashe.
