Gary Schnitkey

Nov 4, 2024 | farmdocdaily.illinois.edu | Hongxia Jiao |Jonathan Coppess |Gary Schnitkey |Carl Zulauf

Since the tariff and trade conflicts that began in 2018, through the pandemic relief assistance efforts in 2020, American farmers have received an unusual amount of ad hoc and supplemental or emergency assistance (see e.g., farmdoc daily, April 18, 2018; July 31, 2018; August 16, 2018; August 28, 2018; May 22, 2020; July 10, 2020; September 3, 2020; June 6, 2022; April 5, 2023).

Sep 5, 2024 | m.farms.com | Carl Zulauf |Gary Schnitkey

By Carl Zulauf and Gary SchnitkeyGiven Federal premium subsidies, crop insurance will provide payments to farmers that exceed the premiums they pay. Payments to farmers have increased over time as premium subsidies have increased. This article examines crop insurance as a payment program.

Jul 24, 2024 | m.farms.com | Gary Schnitkey |Bruce Sherrick

By Gary Schnitkey and Bruce SherrickSupplemental Coverage Option (SCO) is a county-level insurance product that adds a band of coverage over the underlying COMBO crop insurance product up to an 86% coverage level. Enhanced Coverage Option (ECO) provides an additional band from 86% up to either 90% or 95% coverage again based on the county-wide outcome. This article evaluates SCO and ECO for non-irrigated corn and soybeans in the Midwest states from 2015 to 2023.

Jul 16, 2024 | farmdocdaily.illinois.edu | Hongxia Jiao |Gary Schnitkey |Bruce Sherrick |Carl Zulauf

Since the inception of the modern crop insurance performance program, Illinois and the Midwest have had relatively low loss ratios compared to other areas of the country. This result holds even including the 2012 drought year in a relatively short history.

Jun 6, 2024 | m.farms.com | Carl Zulauf |Gary Schnitkey

By Carl Zulauf and Gary SchnitkeyIn response to higher inflation, the Federal Reserve has raised the effective Federal Funds interest rate from 0.08% in January 2022 to 5.3% currently. It is now higher relative to current inflation than its historical average over the last 60 plus years. In contrast, market interest rates relative to inflation are lower than history suggests. The latter is consistent with the market’s view that post-2020 inflation is temporary.