margin protection

Margin Protection Crop Insurance Decision Due

DanIndustry News Release

margin protectionFarmers have until the end of this month to decide if they’d like to take USDA’s new Margin Protection Crop Insurance plan.

Known as M-P, the program most closely aligns with the current A-R-P, or Area Revenue Protection, crop insurance plan. University of Illinois Agricultural Economist Gary Schnitkey says while there is difference the one of note is the price setting period. It locks in input prices (the margin) based on corresponding futures traded in Chicago for urea, DAP, diesel fuel, and interest rates.


Schnitkey doesn’t see any compelling reason for ARP users to switch to Margin Protection and while the plan could be coupled with RP, he thinks the number of takers there will be limited.