Budget-Driven Crop Insurance Coverage Options for 2024

Relative to 2022 and 2023, 2024 is projected to be a low to negative margin year for many grain farmers in Illinois. Because of lower commodity prices, per acre guarantees offered by crop insurance will be lower in 2024 than in 2023. Lower guarantees, along with stubbornly high costs, leads to a dilemma for farmers. Producers may seek crop insurance coverage with lower premium costs as part of broader cost reducing efforts. However, strategies which reduce farmer-paid premium may in turn reduce insurance guarantees or other risk reduction aspects of their insurance coverage, thereby increasing risk exposure. We evaluate options, with a particular emphasis on coverage resulting in farmer-paid premium costs for corn between $23 and $35 per acre in central Illinois. Historically, most farmers have chosen insurance options with premium costs that fall in this range.