Dale Miller, of Silveus Insurance, says farmers can save money by choosing the right level of crop insurance coverage and perhaps covering some risk outside the government crop insurance program.
"I really like crop insurance Enterprise Units (EUs) when they are applicable to the farm,” he says, noting that you may be able to purchase 85% Crop Revenue Coverage (CRC) using EUs for the same premium you'd pay for only 65% coverage with Optional Units (OUs). "In our opinion, even at the 75% OU level, it is hard to make CRC work as a price tool.”
He suggests looking at EUs and supplementing with over-the-counter products for specific weather risks. "Last year, when they saw their crops were delayed, some of our clients used a weather contract to protect against an early freeze,” he explains. "You can also guarantee for a certain number of rain-free days during your planting period. Or you can guarantee growing-degree days during your key months.”
Weather contracts don't have USDA deadlines--you just have to define your risk and coverage period at least 15days before coverage begins, he says.