Late-year strength in commodity prices was welcomed by farmers in 2020, but even with prospects of a brighter outlook for 2021, risk management is still a top priority for maintaining success. That means putting risk management tools, like the right crop insurance, in place.
Mike Goins, Farm Credit Mid-America’s regional vice president for crop insurance, confirms the best way to protect against the unknown is with a sound risk management plan.
“It’s the only way farmers can really guarantee their income,” says Goins. “There are so many risks, and crop insurance is one of the smartest ways farmers can deal with those risks.”
Goins encourages farmers to review available crop insurance options since some changes have been made for 2021 coverage. Policies are not one-size-fits-all, and many combinations can be tailored to fit every farm’s unique set of risks and circumstances.
With so many different policy types – subsidized, unsubsidized and government programs – deciding on the best choice can be confusing. That’s why Farm Credit Mid-America’s crop insurance specialists work with producers to discuss such options as Price Loss Coverage (PLC), Ag Risk Coverage (ARC) and supplemental coverage.
“These programs are complex. By meeting with our team, whether virtually or in-person, we can provide farmers with the assistance they need during the process,” Goins says.
He recommends farmers start by looking at their intended acres, average yields and anticipated cost of production for the upcoming crop year.
“Understand your business plan and consider crop insurance options that protect that specific plan,” Goins says. “We can then offer farmers a more holistic look at their operations by combining our financial expertise, risk management knowledge and our data-driven tools.”
Farm Credit Mid-America’s exclusive data-driven tools allow agents to access their data in real-time, including a producer’s unique, individual policy information, county data and specific crops and yields, to create a variety of recommendations customized to each operation. Providing the data helps ensure that farmers feel confident when making their own decisions.
“There are a thousand what-if scenarios,” Goins says. “Our team of crop insurance specialists can assist customers in making educated decisions that fit their specific operations. Having a knowledgeable agent and solid company behind you is key.”
Farm Credit Mid-America has 64 non-commission-based agents across Ohio, Indiana, Kentucky and Tennessee, who continuously evaluate and analyze policies and programs for farmers. Growers have until March 15, 2021 to decide on coverage for spring-planted crops, but Goins urges farmers to begin the policy evaluation process now to identify the right policies.
“Get started early, so you can understand your options and not have to make a rushed decision,” says Goins. “Markets, USDA Farm Service Agency programs and crop insurance are constantly changing, which is why it’s important to have a trusted team of experts supporting you through the process. We can educate customers about how financing, risk management, farm programs and marketing all tie together so that they can make more strategic choices in the future.”
To connect with a local agent, contact 800-444-FARM or visit e-farmcredit.com/crop-insurance.
