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| Crop insurance coverage is a very individual decision. What is "best" will vary widely region to region, county to county and even farm to farm. Here is southern IL where losses are somewhat more common, optional units are priced way too high for me. However, some folks around here may have a mix of bottom land that could flood and upland that could dry up. For them, optional units make sense despite the cost.
One of the things I look at is the ratio of coverage $$ to premium $$. For example, increasing from 70 to 75% coverage might increase my $ coverage by $50 and cost me an additional $6 in premium, so each dollar of additional premium buys me $8.33 of coverage. But if I go from 75 to 80% that addition $50 coverage might cost me $13, or only $3.85 coverage for each additional dollar in premium. I like to keep that ratio above 4 to 1. Your mileage will vary. | |
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Crop Insurance Level Determination
