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2014 Farm Bill: Historical Likelihood of County ARC and SCO Payments for Soybeans in Illinois

Summary

County ARC is one of the optional commodity programs available to producers of eligible program crops, while SCO is an optional insurance program which supplements the producer's underlying individual plan of insurance. Both programs have "shallow loss" coverage designs: payments are triggered when actual revenues or yields fall below a specific guarantee, and are capped at a percentage of the value of the guarantee. Today's post extends the historical analysis of County ARC and SCO to soybeans in Illinois. Since the decision to use the County ARC (or Individual ARC) program limits the producer's eligibility to use SCO, analysis comparing these programs should be useful in making program decisions.