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| Yeah RA and CRC have different policy features. RMA is slowly removing those differences and with a couple more changes they will be alike except for one big difference - premium. RMA has a serious delimna - they have two products with similar protection and are priced different. Their delimna - how do you correct that issue without a huge public outcry?
Here is evidence of RMA's issue: In Illinois on the West side RA has a greater market share because it is also the lowest priced (premium). However on the East, CRC is the favorably priced product and there is a huge per acre difference between CRC and RA. It makes the decision more difficult because Illinois is the largest premium volume state and it also has the greatest percentage of revenue policies.
For 2008 the big difference in product features was the price movement limits.
Now for GRIP, RMA did something unique. In the beginning there was no limits on GRIP price. Then in 2008, they remodeled the policy terms to introduce a price limit. Now for 2009 they reversed their position again and increased the limit to 200% to be like all other revenue products.
Now for speculation: What will RMA do to the revenue insurance program rating? Theory would say: RA should cost less for 2009 as the RMA has introduced limited price movement and CRC should cost more since the price band has been expanded. We will know when the RMA publishes their 2009 rates.
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Fall Harvest Price
