Crop insurance specialist recommends setting a price floor

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Crop insurance specialist recommends setting a price floor

A crop insurance specialist recommends setting a price floor when making risk management decisions for next year.

Tom Timko with Compeer Financial tells Brownfield the first priority when marketing grain is to not lose money.

“So as I think about setting floors, one of the first things you’re going to do is look at what you can get from your crop insurance levels depending upon the choices you make.”

From there, he says farmers should consider cost of production.

“What do I need to do to make sure I’m profitable? And that may go hand-in-hand with doing some advanced marketing in conjunction with your crop insurance guarantees. You want to do enough marketing to make sure you don’t go backwards.”

Timko says for farmers concerned about market volatility the next few months, there are some tools to lock in the spring price for crop insurance right now. 

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