Comment Text:
The hybrid VSR would greatly increase our ability to utilize the full value of a MPCI Revenue Policy. Without convergence, the spread between the local cash price and the crop insurance discovered price, set by futures only, leaves too large of a gap for true risk management. The reduction in value of the MPCI Revenue policy reduces the only guarantee we have in farming, and decreases our ability to finance our production cost.
I believe the use of the Hybrid VSR, with an annual review, would bring more confidence to our grain markets. Tighter convergence creates more certainty and connects our farm closer to global markets, increasing our opportunity for success.
