Is freeze insurance the next big thing??
Aug 15, 2013
Many producers are starting to look into "Freeze Insurance." The graphic below simply shows various types of coverages growers can now take against key weather events that can ultimately limit corn yields. There are also coverages now available that can cover specific time frames, i.e. a $100,000 of freeze insurance in Northern Iowa through late-Sept for under $20,000. From how I understand it, pay-offs are based on temps... so if it falls to 30 degrees you get paid a certain amount, a drop to 29 degrees you get paid even more, and so on. There are also similar short-term policies available for "rain" and "heat" during desired time frames as well. Meaning if you know your crop is going to pollinate during a certain period and are concerned about the heat and or lack of rainfall you can insure just that period of time. Bottom-line, there are some very cool things happening in the insurance world that can help todays producer better mitigate his risk besides the standard policies and traditional on-the-board hedging. Be sure and talk with your local insurance agent about what type of "Freeze Coverage" they are offering right now. If they have nothing available you might want to call our office so we can point you in the right direction (816) 322-5300. I have some guys that are offering some good rates and coverage if it is something you are interested in.
Click here to take my full report