Maybe you have a field that went in very late—or that's prone to frost damage before others. Now, you can write your own income protection. You specify how many acres at what dollar amount of coverage. You don't have to cover a whole farm or enterprise unit. It doesn't matter what crop you grow there. You don't have to prove damage; this is a purely financial transaction.
Premiums differ based on where you farm (you choose the nearest city with good temperature records and a secure weather reporting station), how many dollars per acre you want to cover, the date you choose and the temperature you are protecting against, reports Kurt Koester of AgriSource Inc. in West Des Moines. See table
showing comparison of five places and four time periods. Be aware that quotes change frequently.
"Maybe you signed up for one of the county-based Group Revenue Insurance products, but you have some acres that you are especially concerned about,” he says. "This would be a good complement.”
"If you live in Mankato, Minn., and you are worried about the frost many are predicting around Sept. 25, it would cost you $10.60/acre for a payout of $100 if the weather reporting station reports 30 degrees or less,” he explains. "Too much to pay? You could lower the temperature or the dollar amount. Maybe you want to just get paid enough for drying costs.”
AgriSource has a quote program that not only shows you comparable bids, but provides the information about the dates in the past thirty years that such temperatures occurred. For example, Koester reports that the earliest freeze in Evansville, Ind. was Oct. 4. That's why the table shows such a low post to ensure against 30 degrees there.