CRC is bringing new farmers into the program and getting farmers to buy up from the catastrophic level. Additionally, it is bringing bigger farmers who may offer less risk into the program, many for the first time. These have been the goals of the crop insurance program for many years, and we are finally seeing them realized with this product. We must all recognize that farmers have proved willing to pay a higher price for improved coverage. What this means is that the farmer is picking up all of the cost for his increased coverage.
Farmers understand the value of CRC and they are willing to pay for it.
When market prices increase, so does his CRC coverage. The farmer has the security he needs to use alternative marketing strategies and maximize his profit in the market. The key is that CRC guarantees his revenue so he knows he has something to sell. Additionally, CRC provides downside protection, for the years when prices go down at harvest. With CRC, the farmer does not always have to have a yield loss to receive an indemnity payment.