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ARC and PLC more prominent in 2025 risk management

A crop insurance specialist suggests Title I Commodity programs should play a bigger part in risk management in 2025.

Cole Patrick with Compeer Financial says Agriculture Risk Coverage and Price Loss Coverage are designed to be more effective when markets are down.

“Where they are going to come into play is when these commodity prices come off of high years into low years. And the reason that is important is because those operate off of what’s called an ‘olympic average’ over five years.”

He tells Brownfield ARC could be the more viable option next year if corn prices stay below $4.33.

“Right now those December futures for corn are sitting relatively around that same level, so the question is do you think that corn price is going to be higher than that $4.33? And if so, probably your subsidized ECO (Enhanced Coverage Option) and SCO (Supplemental Coverage Option) is going to be a better option.”

Patrick says the ECO shallow loss coverage received a subsidy boost from 44 percent up to 65 percent that farmers might want to take advantage of.