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    Is RP with the Harvest Price Exclusion a Good Option for 2012?

    Gary Schnitkey (February, 2012)
    Summary

    Should Revenue Protection with the Harvest Price Exclusion (RPwExcl) be considered as an alternative to Revenue Protection (RP). Unlike RP, RPwExcl does not allow its guarantee to increase if harvest price is above projected price. If RPwExcl is used, the author suggests considering a coverage level 5 percent higher than the RP product. These two products have roughly the same premiums. However, payments will vary between the two alternatives. RPwExcl will provide more price protection while RP will provide more yield protection.

  • Details

    Organization
    University of Illinois Extension
    Publisher
    University of Illinois
    Published
    February, 2012
    Material Type
    Written Material