Crop Insurance & Marketing

Allows Safe Capture of Marketing Opportunities

I have spoken to producers who farm a large number of acres, and commit thousands of bushels each year through futures contracts or forward contracts at the elevator. If you are doing this and not buying crop insurance, you are actually increasing your risk should you have a production shortage. 2004 is a prime example of using a good revenue policy to allow you to capture any marketing opportunities that may come your way prior to harvest. Several producers left a large amount of profit margin on the table as they either did not have crop insurance or did not understand how their crop insurance works for them. You do not have to be a “marketing expert” to lock in acceptable prices with a simple forward contract shored up with the right crop insurance policy. Revenue policies were designed as a tool to assist the farmer who wants to protect risk while taking advantage of marketing opportunities as they present themselves.

In a year like 2004, a large drop in market prices will significantly increase your likelihood of collecting on a crop insurance claim. If your yield is well above average, it is less likely that you will collect, but check out your guarantees to be sure. Of course, this is to be used only as a guide.

2007 Prices

2006 Prices

2005 Prices

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