Some farmers might be suffering from crop insurance premium “sticker shock”
An extension farm management specialist suspects most farmers still mulling over crop insurance for 2021 are suffering from “sticker shock.”
Steve Johnson with Iowa State University says premiums have risen because projected spring prices for corn are nearly 20 percent higher than last year and soybeans are 30 percent higher.
“Oh my gosh, I didn’t know I was going to pay that much for revenue protection. That’s the group that’s hurting.”
But with the deadline looming, he does not expect many farmers to pass on crop insurance because of the higher premium.
“I think if there are lenders involved, that lender is going to make sure you’ve got crop insurance.”
Johnson tells Brownfield some farmers might try to save by moving to a lower level of coverage or by switching from optional to enterprise units. The deadline to enroll in crop insurance is March 15th.