The reforms do address some of producer's concerns. Under previous law, maximum coverage was 75 percent. Introduced as part of the 1998 disaster package, producers can continue to get reduced premium rates on policies offering 55 perent or greater level of yield guarantee. The farmer must still decide if it is worthwhile to move up to a higher level of coverage. But, if cost has been a prohibitive factor in the past, this is an opportunity to get added coverage relatively cheaply.
P rovides for insuring cost of production rather than yield.
If this proves workable, it would be a boost for some crop producers. CRC is currently available on corn, cotton, grain sorghum, soybeans, and wheat in most counties producing this crops. CRC combines yield risk and price risk in a single policy and depending on the premium, may need to be considered by more farmers. The APH is the historical average yield. In situations where a producer suffers a disaster and the county does not, this change will be helpful.