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| Neb farmer. With GRIP, having higher or lower yields than county average are not the issue. The main consideration with GRIP is trending with the county yields. If you have bad years when the county does, and good years when the county does, GRIP might be a consideration. There are two reasons having higher aphs than the county are not an issue. One, you are able to buy such higher levels of GRIP, that even if the county yield is lower on average, you are collecting sooner (more dollars) and, GRIP "inflates" the value per bushel, paying 1.5 times the spring price (actually a little higher than 1.5, if you lose one bu of guarantee with a 90% level, 100% price, from the county guarantee, you would collect $9 for that bushel). These two aspects mean when GRIP pays, it pays quickly, and pays allot.
There is a reason for this, to make up for it's "inexactness", because even though the county yield may suffer, you may farm in a part of the county that is having a worse year.
I'll attach a quick example. I'll put one year of RA and GRIP together, I don't have the time to work up premiums, but look at what happens. I'll put in low county yield in, but an even lower yield for the producer, and compare two levels of GRIP, along with three levels of RA.
As for RA and CRC comparisons, they are "rated" differently. As I have been told, one rates from the yield side first, then applies price (CRC I believe), the other rates from price first, then applies yield. I know, doesn't make much sense. Remember, if the is close, RA has unlimited up and down price movement, while cRC stops at $1.50 up/down on corn, $3.00 with SB.
Opinions, as always, Rob I'm driving, and will talk on the cell if you have ideas or questions, 402-643-0235
Attachments
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 Washington NE NI CRN example.pdf (85KB - 146 downloads)
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Soybean GRIP "perfect storm"?
