OPTIMAL SUPPLEMENTAL COVERAGE OPTION CROP INSURANCE DECISION FOR KENTUCKY COMMODITY CROP PRODUCERS

Jerzy Z. Jaromczyk
The 2018 Farm Bill has reopened commodity program enrollment for producers, and thus renewed interest in the Supplemental Coverage Option (SCO) of the Federal Crop Insurance Program (FCIP). This thesis examines the potential risk management benefits afforded to Kentucky corn, soybean and wheat producers by the SCO. A simulation model is used to rank downside-risk minimization of the common Multi-peril Crop Insurance Policies (MPCI) policies both with and without the SCO for various farm-level yield...
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