While winter is a time to buy crop insurance, summer is the time to evaluate your coverage and make changes. Jason Alexander, Farm Credit Mid-America’s vice president of crop insurance, says this is the time of year when producers need to evaluate their coverage, especially in light of the lower market prices we are seeing, “The spring price for corn was set at $3.86 and now we are about $3.59, so we are encouraging farmers to do some planning to see how even lower prices might impact them.” He reminds producers that the harvest price is tied to what the December futures contract does during October. “If it drops more, you could still be above your crop insurance guarantee and a revenue claim trigger,” said Alexander. He urges producers to reach out and discuss their options with their insurance provider.
Alexander adds that evaluating how your crop insurance policy is structured may also be something you want to consider, “With some fields being washed out and others being okay, if you are on enterprise units that groups them together and that will impact your overall yield.”