ISU Extension Farm Management Specialist Tim Christensen

A deadline is coming up fast for farmers to decide on a crop insurance plan.

ISU Extension Farm Management Specialist Tim Christensen says the two main coverage options include the agriculture risk coverage (ARC) and the price loss coverage (PLC). He notes that ARC protects against price and crop losses, while PLC protects against price loss on crops. Christensen points out two additional coverage options are the Supplemental Coverage Option (SCO), which is only offered with PLC and the Enhanced Coverage Option (ECO), which can be used with either ARC or PLC. 

Christensen talks about SCO and ECO being county-based products.

“The thing that people need to understand is revenue protection (ARC and PLC) insurance you buy every year is on your farm. SCO and ECO are county-based products, so they are based off of county yields, not your farm yields. So if you have a hail storm that hits your farm and the rest of the county is not affected, these products are not going to help you. It’s a product that you’re protecting against county yields losses, not on farm losses.”      

Christensen says another change for the farm bill is making the decision for either ARC or PLC on an annual basis instead of every five years. The deadline to sign up is March 15th and Christensen adds if you don’t decide by the deadline which insurance program to purchase, you will be automatically re-enrolled in the current program.