Making the right crop insurance decisions in time
Pressure is mounting for growers to lock in their crop insurance decisions by the March 15th deadline.
University of Illinois experts say projected prices are pretty high but below current futures prices which makes a portion of revenue guarantees less valuable and less likely to pay. But, they say, there are options to lock in higher values and harvest price options increase in value.
Bruce Sherrick with the University of Illinois says it’s critical to use price distribution and their other tools available.
“These prices were $2 higher still now, but insurance prices were $2 lower, of course it creates a lower effective coverage level. But, you’re really getting a lot of insurance for that a lot of money.”
Sherrick, on the recent Farm Doc webinar, says there are differences in subsidy rates by coverage level and unit so evaluating local impacts is also critical.
Gary Schnitkey (chair of ag strategy) says farmers should watch prices closely until making final crop insurance decisions and always talk with a qualified agent for details about their own situations.