This time of year producers are meeting with their crop insurance providers to outline plans and coverage for 2017. One of the key issues that is discussed at these meeting is that is the amount of risk with which each producer is comfortable. “The difference between the total cost of inputs and your crop insurance guarantee depends on the amount of risk you are comfortable with,” said Chris Coffey, with Farm Credit Mid-America. Speaking on the HAT radio feature Financially Speaking, Coffey said providing your lender and crop insurance agent with the most up-to-date information on your operation and your plans is crucial to getting an accurate recommendation on your spring guarantee, “For example, since your coverage is based on a 10 year production history, it is likely your guarantee will increase because of higher yields this past year.”
Coffey said the decisions you make on crop insurance will impact the other production decisions you need to make, “When it comes to crop selection, modeling scenarios with your crop insurance specialist will help you take advantage of grain prices by determining which crops should guarantee the best revenue.”
March 15 is the deadline for having your crop insurance plans in place. Farm Credit Mid-America has a variety of on-line resources to help. Visit e-farmcredit.com.