How many dollars of coverage does your crop insurance policy need to have in order to adequately cover your operation? As agents this is the #1 question we ask producers when deciding on which crop insurance policies and products are needed for the upcoming year. Each year there are different factors that affect what products we may advise you to use or not to use, depending on the year.
Price. The first, and probably the most important factor that is considered in the crop insurance portfolio. The first price is that of the commodity being covered. The second price is the price of the policy itself. These two dollar amounts go hand in hand. On a year with high commodity prices, premiums will be on the higher side, but on a year with lower commodity prices, premiums will be on the lower side. This is due to the fact that with higher commodity prices, the coverage per acre is higher and vice versa when prices are lower.
Inputs. Another area that needs to be considered when determining your insurance coverage. While crop insurance is an input itself, it is also a tool that covers the inputs that you have into the crop. A year with $5 corn and $4/gallon diesel looks a lot different than a year with $4.50 corn and $2.50/gallon diesel.
The list could be never-ending with items that affect how much coverage you need on your operation, but that is for you to decide as the producer. Once a number is set for the amount of coverage that is needed per acre, we begin creating your crop coverage portfolio.
The portfolio is carefully analyzed & typically made up of 2 to 3, if not more, different products to place the dollars of coverage where you need them. Not just one policy. This is often made up of a multi-peril policy, any additional products to the MPCI policy, a crop-hail policy and / or other private products depending on the location of the crops being insured.
During this process is where the producer gets to experience the excellent service of working with Ag Service Associates. ASA agents don’t just present the producer with one portfolio to choose from, but instead multiple different policies and products that can be mixed and matched. This allows for a fully customized coverage portfolio for your operation that provides the necessary coverage, while still maintaining a desired budget.
Here in our home state of Nebraska, the deadline to begin creating your custom portfolio is March 15th for 2024 spring crops. Make sure you review your coverage portfolio before March 15th to ensure you have the correct coverage in the correct places. If you would like an ASA agent to assist in reviewing your coverage, contact us today, and we would be happy to assist with your crop insurance needs. Give us a call at 308-995-6187 or email Brennan@ASAcrop.com for a consultation.