Sales Closing in the Midwest is still two months away, but it is never too early to review and rethink your crop insurance policy. Do you fully understand your coverage and the crop insurance policy you are receiving? Asking questions and discussing options with your crop insurance agent can benefit you. Here are some questions to think about:
Do I have the proper coverage level?
- Am I over covered, therefore over paying?
- Am I under covered, therefore not reaching the appropriate guarantee for my operation in a loss situation?
When your crop insurance level increases, so does your premium. Being over covered can cost you a lot of money in the long run, but so can being under covered. Each farm and ranch is unique. Be treated as unique and receive the appropriate coverage level.
Do I have appropriate options on my policy?
- What do my options cost me?
- Do I need all of the options I have on my current policy?
Having the appropriate options on your policy can increase your insurance guarantee. Not having appropriate options can cost you in loss payments and premium. Always ask if your options are necessary.
Should I buy up my prevented planting coverage?
Prevented Planting coverage is important in the prairie pothole region. The PP buy up is determined on a case by case basis by the AIP. The PP buy up will increase the coverage you have when you are prevented from planting.
Is a whole farm revenue protection policy good for my operation?
- Do I have to cover all of my crops and other commodities under this policy?
Whole farm revenue protection covers a farm’s yearly revenue for one commodity to all of a farms commodity. Insured’s with a wide variety of crops, cattle, or other commodities should consider the WFRP policy. It is subsidized up to 80% and hemp is now insurable under this policy.
Do I have the appropriate unit structures for my crops?
- What are the advantages and disadvantages of the different unit structures?
Appropriate unit structures can have a major effect on crop insurance premiums and losses. Enterprise Units, Basic Units, and Optional Units all have advantages and disadvantages from subsidies to loss payments. Consider long term costs of each.
Will my added land receive prevented planting coverage?
Prevented planting coverage on added land prior to the sales closing date, like prevented planting buy up, will be determined on a case by case basis. The main question for AIP decisions will be: Was there a pre-existing loss condition at the time the land was acquired?
Is the supplemental coverage option good for me?
The supplement coverage option allows you to buy up coverage to an 86% level. Cost varies across counties and will need to be determined on an individual farm and crop basis.
How much grain can I market?
It is recommended that you only market up to your crop insurance guarantee. If you have a loss, you could fall short of meeting your marketing expectations if you market more than your guarantee.
There are plenty more questions you can ask in regards to your crop insurance. Use your agent as a resource. Use us as a resource. We will gladly assist you in any way possible. Again, everyone’s situation is unique. Conform your crop insurance to your farm operation needs.
One last question to ask: Why should I consider Cropland Insurance Services, LLC for my crop insurance coverage?
Even as a relatively new agency, we have a lot of crop insurance experience. Whether it is crop insurance underwriting, growing up on a farm, or farm accounting, we understand the business and needs of our farmers and ranchers. We pride ourselves in serving our farmers to our fullest extent. We evolve with technology and appropriate ourselves to such changes. We stay educated and up to date because that is what you deserve.