Many Iowa corn and soybean producers are discouraged going into the fall harvest as commodity prices have dropped significantly from a year ago. Ag economist Michael Langemeier says farmers need to look at every option to counter those lower prices, including their crop insurance policies.
“I would really encourage producers to take a close look at the revenue policies,” Langemeier says. “Those policies can protect against a lower yield but also lower prices. If prices drop substantially from the spring to the fall in a particular year, you’re protected on the low end from that.”
Langemeier says there are several new programs being offered that help to protect a farmer’s bottom line, including price loss coverage, or PLC.
“Agriculture risk coverage is more of a revenue type program,” he says, “and the PLC, really what it comes down to from a producer’s standpoint is, how low do you think prices really are going to go?”
Langemeier says other new programs include Agriculture Revenue Coverage and other supplemental coverage options. Some predict farm income will drop more than 12-percent from last year.