The deadline for finalizing 2017 federal crop-insurance needs is March 15, and Iowa producer Chris Barron says it’s a decision that merits thoughtful conversations with your agent. The spring price for corn is set at $3.96, while the spring price for soybeans is set at $10.19.
“When we purchase crop insurance, it tends to be somewhere between 2% and 5% of our total cost of production,” says Barron, host of the new “Margin Minute” video series on AgWeb.com and owner of consulting firm Ag View Solutions. “At the same time, it’s protecting about 60% to 85% of our total risk. From a value perspective, as a service that we as producers can purchase, it’s a high-value opportunity that we really need to stay focused on to make sure that we’re not cutting ourselves short.”
Crop insurance protects peace of mind in the event of damaging weather such as drought or hail. It also protects economic capital. Barron recommends that producers run stress tests of their financials to ensure they have appropriate protection if revenues are lower than anticipated.
You can also watch a video of Barron introducing himself and the new Margin Minute video series: