Quote:
Originally Posted by sakogreywolf
Crop insurance records your yields from years past, and from that your averages are calculated. Depending on how much insurance you purchase, you are guaranteed a percentage of your "average yield".
If you purchase 50% coverage (minimum insurance), you are insured to be covered for 50% of your average yield. You can purchase up to a maximum of 80% coverage, which would insure you for up to 80% of your crop insurance average. Of course 80% coverage costs considerably more than 50% coverage.
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This is correct. Nothing to do with carryover. Out of the last 5 years of crop, the lowest and highest yields are dropped. The remaining 3 give you your average yield The average is yield continually changing