Price and weather fluctuations influence insurance decisions

Harvest has finished in many areas and decisions have already been made about the 2023 season, including plans for crop insurance.

Doug BurnsVice President of Related Services Farm Credit Service of Americadiscussed what producers must look at when making insurance decisions amid price volatility.

IFT: Has it been a busy year for insurance adjusters?

BURNS: Yes, but sporadically. I talk to insurance teams all the time and yield volatility is very important. I’m talking a mile or two away. I’ve heard that growers can get the best yields, but some growers don’t yield very well. It’s very pocket driven. Depending on when they were planted, some have had timely rains this summer.

There are some claims, but no doubt. There are some drought areas where some growers are not getting good yields, but there are also some amazing yields.

IFT: We’ve dealt with rising crop prices over the past few years, but there’s plenty of volatility. Between variable yields and price volatility, are they impacting the way people approach crop insurance?

Burns: Yes, yes. Higher commodity prices see some of the best crop insurance guarantees ever. Growers can insure incredibly expensive crop insurance — some may cover production costs, some may be at profit levels, but we fixes those warranties.

IFT: Enrollment in ARC and PLC Coverage Programs recently opened, March 15th For the 2023 growing season. Is there any benefit to registering now, or is it better to wait?

BURNS: I always tell producers not to wait until the last minute. You can make various changes up to March 15thso the producers won’t make that decision right now, but please don’t March 15th Also. In February he will start tracking commodity prices for 2023, but we don’t have to wait until then.

Some growers lock in very early, but my advice is to check crop insurance with your agent before making a decision. Crop insurance is continuous insurance. If you don’t do anything, it will be carried over to next year. But we’ve been making so many changes that they’ve had to think about — if they have a claim, what’s going on with the price, what’s the price volatility — all of this is It may change from year to year.

IFT: We see higher premiums and decent payout prices in case people need it. Are there any changes we should expect in the future for crop insurance?

BURNS: There always seem to be some changes, but we’ll know next month or December. Last year they implemented a split nitrogen program. I don’t know, but I think it will expand. We usually know in about 45 days.

Telling growers about their harvest lunch just finished selling profit protection crop insurance. If you choose not to look at margin protection, supplemental and extended coverage options are nothing new, but we think they will look very attractive in 2023.

IFT: We don’t know what the final insurance numbers will be, but what are the factors we need to keep in mind when making these decisions?

BURNS: Knowing the cost of production is very important. This will help you choose which level of insurance coverage you want. Most producers want to cover that cost. We have a long way to go before it’s revealed in February, so I don’t want to speculate about it, but it’s a big deciding factor.

There are always many products and options. Products such as hail insurance and wind insurance are becoming more popular than ever. Sometimes the deadlines are the same, sometimes not. Don’t forget these options.

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