EC96-822 Crop Revenue Coverage and Group Risk Plan--Additional Risk Managment Tools for Wheat Growers

This article examines two new multi-peril crop insurance offersings, Crop Revenue Coverage (CRC) and the Group Risk Plan (GRP), that may help wheat producers manage risk. First, bsaic crop-hail and Actual Production History (APH) coverage and the protection they offer will be compared. Then, additional protection offered by CTRC, which is avilable to Nebraska wheat growers on a pilot basis for 1997 with be outlined. Finally, GRP will be discussed, which will also be offered to Nebraska wheat growers for the first time for 1997 crop wheat. The Federal Agricultural Improvemoent and Reform (FAIR) Act, better known as Freedom to Farm, provides for market transition payments that are independent of market prices. The new program eliminates the acreage reduction requirment and provides comlpete flexibility in planting of all crops except fruits and vegetables. The Crop Insurance Reform Act of 1994 prohibits ad hoc crop disaster programs unless the funds are takem from other agriculture program