The change in price movement provisions to both CRC and RA/HPO policies, allow these two products for the most part to provide the same protection.  With this being said, the main reason why a farmer would choose one over the other would be because of price.  In the examples that Crop Insurance Solutions has run in the state of South Dakota, CRC has been less expensive than RA/HPO on Enterprise Units.  At the higher levels of coverage, CRC is as much as $1-$3/acre cheaper on Enterprise Units. 

Moving on….You might wonder why I am mentioning Enterprise Units???  Well last year RMA significantly increased the susidy for Enterprise Units and made many farmers or should have made many farmers look at this unit structure.  Here is a snap shot of what the numbers look like for Turner County soybeans….

In 2009,  for approximately the same premium paid for a 65% RA/HPO Optional Unit policy ($6.73/Acre), you could have purchased an 80% CRC Enterprise Unit Policy($7.69).  Also you would have increased your guarantee per acre roughly 23% ($194 to $239).  The numbers speak for themselves.

If your agent did not discuss these scenarios, YOU need to give us a call!!!! 

Have a great night and please call us at 877-731-3334