Using crop insurance in 2012
In 2011, most corn and soybean acres in Illinois were insured using Revenue Protection (RP) at a 75% or higher coverage level. At these coverage levels, most acres where insured using enterprise units.
For those choosing RP at a 75% or higher coverage level with enterprise units last year, a similar choice in 2012 seems prudent given that the Trend-Adjusted Actual Production History (TA-APH) yield endorsement is added to the RP policy. Some consideration to RP with the harvest price exclusion (RPwExcl) may be warranted. Group Risk Income Plan (GRIP) users may wish to re-evaluate choices as GRIP premiums have gone up will RP premiums have come down. GRIP still has attractive features, but relative costs have changed.
Insurance Use on Corn in 2011
In 2011, 10,171 million acres of corn were insured using multi-peril crop insurance policies in Illinois, The insured acres of 10,181 million represents 81% of all planted acres in 2011.
In 2011, Revenue Protection (RP) was the plan receiving the largest use, with 73% of the acres being insured using RP. The plan receiving the next highest use was Group Risk Income Plan with the Harvest Revenue Option with 9% of the acre. Remaining plans were RP with the harvest price exclusion (RPwExcl) with 8 percent of the acres, Yield Protection (YP) with 7% of the acres, Group Risk Plan with 1 percent of the acres, and GRIP without the harvest price option (GRIP-NoHR) with 1% of the acres.
RP use was concentrated in the three highest coverage levels. The 75% coverage level had 14% of acres, the 80% coverage level had 26% of acres, and the 85% coverage level had 26% of acres. The three highest coverage level of RP accounted for 65% of acres insured. Of acres insured using RP, the three highest coverage levels accounted for 89% of the acres insured using RP.
RP users tended to purchase enterprise units when insuring acres rather than basic and optional units. Enterprise units are all of one crop in a county and premiums on enterprise units are significantly lower than premiums on basic and optional units. Enterprises units were used on 62% of acres insured using RP. Enterprise use increased with higher coverage levels. Enterprise units were used to insure 48% of acres at the 75% coverage level, 66% of acres at the 80% coverage level, and 76% of acres at the 85% coverage level.
Insurance Use on Soybeans in 2011
Overall, insurance use in soybeans was similar to use in corn. In 2011, 6,860 million acres of corn were insured using multi-peril crop insurance policies in Illinois. The 6,860 million acres represents 77% of all soybean acres planted in 2011.
In 2011, RP was the plan receiving the largest use with 82 percent of the acres insured with RP. YP was the next highest use with 12% of insured acres. RPwExcl followed with 10% of acres. GRIP-HR has 6% of acres, GRP had 2% of acres, and GRIP-NoHR has 1% of acres.