A whole farm insurance model insures farmers against both crop and price failure that results in declining income. It covers the whole farm, rather than a specific commodity, and would be actuarially sound, with costs roughly equally the expected benefit.
CCGA’s proposed program differs from past revenue insurance programs in a very important way – it reflects current market prices rather than an average of historical prices. By using current market prices based on spring forward prices, a whole farm income assurance program provides an unbiased reflection of current market signals, giving more accurate coverage levels to farmers.