OT: Crop Insurance, what is everyone doing?

Matt NWIN · Mar 5, 2011

Just curious what those of us on here that farm enough to mess with taking crop insurance are doing. What policies are you taking out and at what coverage level? I've traditionally taken Revenue Assurance @80 percent without the harvest price option. This year, with the prices as high as they are, I'm thinking of bumping it to 85 percent and taking the harvest price option. Looks like the spring prices they set are 6.01 for corn and 13.49 for beans. I imagine premiums will be through the roof but the guarantees will be high enough that it might just pay off. Your thoughts??

GeneMO · Mar 5, 2011

Not sure how you are laid out, but they are saying that by taking enterprise units you can bump up your coverage level by 5% and have about the same premium

Enterprise units throws all your operation together by crop. So your guarantee would be on all of your corn or all of your soybeans..

Whole farm units throws all of your operation together for all crops. You would just have one big guarantee.

Not sure if it applies anymore, but the max. govt. subsidy used to be at the 65% level. The subsidy really dropped off above that.

By all means you want the fall harvest option. I have seen too many folks loose out on a claim when they were actually short on their bushels but a high price at harvest worked them out of a claim.

Danged prices have been so variable anymore that the normal person can't second guess them.

Good luck, Gene

Dave from MN · Mar 5, 2011

I am doing 80% RA+hail/wind on my corn land in this county that I cant get enterprise units on as it is all in on section. I have land in another county that is in 2 sections, that I will go 85%, first year in that county so I will be insuring against county average i assume. Beans I am not sure on yet. Only have 10 days left to decide.

GeneMO · Mar 5, 2011

Dave, Make sure to tell the agent that you are a "new producer" in that new county. You will at least get 100% of the T yeild, or there may be a way they can give you a better yield based on the county that you have been farming in.

Not sure about that last part. I work crop claims and am not involved in underwriting.

Gene

1936 · Mar 6, 2011

Crop insurance is all or none for coverage if you sign up.

JOCCO · Mar 6, 2011

For what i have, Crop I does not seem to pay out well 1. you have to have such a loss to start with 2.Then they seem to pay only a little once they doo all the math. I dumped them and did not look back!!!

Perplexed · Mar 6, 2011

I'm not doing anything because I don't use it. I don't have anything against crop insurance, but i think it's wrong to subsidize the premium. It seems wrong to force average tax payers to subsidize insurance premiums for farmers who have much higher incomes and net worths than they have.

OT: Crop Insurance, what is everyone doing?

Matt NWIN

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GeneMO

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Dave from MN

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GeneMO

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1936

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JOCCO

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Perplexed

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