Happy New Year! As we are preparing for the upcoming spring sales season, questions are on the rise and that’s why we’re here, to answer them. Let’s address one of the most common concerns today:
Why should I buy crop insurance if the spring price will be low?
RESPONSE: Revenue protection is a very popular crop insurance policy today. It not only pays on price fluctuations, but yield losses as well. In 2012, Wisconsin suffered a drought, causing a shortage of crops and prices to handsomely increase. In the case of an insured having a revenue crop insurance policy, they not only had a yield loss, but were paid at a very high fall harvest price, set by the Chicago Board of Trade. This was a great benefit to the farms.
As claims are being finalized from the 2014 crop, we are all familiar that crops were overall good, and commodity prices fell in the fall. HOWEVER, those with a yield loss were paid based on the spring price of $4.62 for corn and $11.36 for beans.
If we knew what our spring and summer were going to bring, we’d be the most popular business in town, but we don’t. Keep in mind that crop insurance can still work in multiple scenarios for you. We are here to make sure your policy is right for you.