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Increased Probabilities of Crop Insurance Payments

Gary Schnitkey and, Bruce Sherrick (October, 2008)

Summary

Recent commodity price declines have increased the probability that crop insurance products insuring revenue will make payments. Revenue products include Crop Revenue Coverage (CRC) and Revenue Assurance (RA), and Group Risk Income Plan (GRIP). CRC and RA insure revenues using farm-level yields to establish guarantees and payments. GRIP uses county yields. Potential payments from these products are described.