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| Buying the call like you stated is giving you a lot more than what RP is, that is in part why it costs so much more.
For example, if wheat goes up $1, and you grow your APH, you aren't going to get paid anything by insurance. But those calls you bought will have more than doubled.
I think a call strategy would be more effective with RP-HPE when using it to offset actual forward sales. In reality, I doubt most using RP-HPE are doing this, myself included. But calls can be purchased and sold, so I am never going to rule out using that as a hedge to cover the drought month scares, IE purchase in June and sell in August, assuming a nationwide drought does not come to fruition.
It might be really hard to get a true apples to apples scenario priced out using RP-HPE + call protection to the RP equivalent. I personally do not want full RP equivalent though, but I can see use of some call hedging situationally.
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The case for harvest price exclusion (RP-HPE)
