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Current Crop Insurance Policies - APRI

Summary

The 2014 Farm Bill left the farm-level COMBO products introduced in 2011 by the United States Department of Agriculture (USDA) Risk Management Agency (RMA) unchanged but released the Area Risk Protection Insurance (ARPI) to overhaul the county-level or Group products. It also created the Supplemental Coverage Option (SCO) endorsement to cover shallow losses for farms not enrolled in the Area Risk Coverage (ARC) program managed by the USDA Farm Service Agency (FSA). With the 2018 Farm Bill, changes were minimal with the exception of the Enhanced Coverage Option (ECO)1 endorsement, to cover very shallow losses and not restricted by participation in Farm Service Agency programs. This article describes current COMBO and ARPI products and illustrates each of them with numerical examples using 2020 price data.