2014 Farm Bill: Historical Likelihood of County ARC and SCO Payments for Soybeans in Illinois
The farmdoc daily posts on May 8th and May 15th analyzed the County Ag Risk Coverage (ARC) and Supplemental Coverage Option (SCO) programs created in the 2014 Farm Bill. County ARC is one of the optional commodity programs available to producers of eligible program crops, while SCO is an optional insurance program which supplements the producer’s underlying individual plan of insurance. Both programs have “shallow loss” coverage designs: payments are triggered when actual revenues or yields fall below a specific guarantee, and are capped at a percentage of the value of the guarantee (details on the new commodity program options can be found in farmdoc daily February 20, 2014; details on SCO can be found in farmdoc daily February 27, 2014 and April 24, 2014; all posts in our continuing series on the 2014 Farm Bill can be accessed here). Today’s post extends the historical analysis of County ARC and SCO to soybeans in Illinois. Since the decision to use the County ARC (or Individual ARC) program limits the producer’s eligibility to use SCO, analysis comparing these programs should be useful in making program decisions.
Coverage Levels on Crop Insurance and the SCO Alternative
Over time, crop insurance coverage levels chosen by farmers have increased, and there are regional patterns in coverage elections. Coverage level choices tend to be highest for corn and soybeans in the heart of the Corn Belt. These regional distributions will impact the economic attractiveness of the Supplemental Coverage Option (SCO), a new crop insurance product specified in the 2014 Farm Bill (farmdoc daily February 27, 2014). Because SCO will be more attractive where lower coverage levels predominate, SCO use likely will be more attractive outside of the Corn Belt.
Key Considerations for an Economic and Legal Framework Facilitating Medical Travel
Medical travel has the capacity to counter increasing costs of health care by creating new markets and increased revenue for health services, potentially benefiting local populations, economies, and health-care systems. This paper is part of a broad, comprehensive project aimed at developing a global health access policy (GHAP). It presents key issues to consider in terms of ensuring economic viability, sustainability, and limiting risk to the many stakeholders involved in the rapidly expanding industry of medical travel. The noted economic and legal barriers to medical travel are based on a synthesis of themes found in an extensive review of the available literature. Economic considerations, when setting up a GHAP, include a dynamic approach to pricing that is fair to the local population. Legal considerations include the implementation of international quality standards and the protection of the rights of those traveling as well as those of local populations in recipient countries. By taking into account these opportunities, the GHAP will more adequately address existing gaps in the economic and legal regulation of medical travel.