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dakotafarm4754416
Contributor

Crop Insurance Production Cost Insurance

I was at a meeting and listened to a guy from Diversified Crop about Production Cost Insurance.  Sounds like more record keeping, but it sounds really good.  It is focused on profitability.  The guy said the guarantee is based on 100% of what I spend on seed, fertilizer and chemical plus another set amount. 

I have been doing some math this past week and I am nervous enough about just covering my costs... Anyone use it or heard of it?

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4 Replies
JimMeade
Veteran Advisor

Re: Crop Insurance Production Cost Insurance

No, I've not heard of it.

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dakotafarm4754416
Contributor

Re: Crop Insurance Production Cost Insurance

It sounds real good.  I can get a guaranteed income (unfortunately not profit-ha).  The way they do it is guarantee me so much per acre plus 100% of whatever I want to spend on my seed, fertil,izer and chemical.

I like it because it allows me to do exactly what my agronomist suggests, rather than trying to skimp corners and save a little on fertilizer.  Because every dollar I spend actually increases my coverage but my premium stays set.

 

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thomasrobe2151765
Contributor

Re: Crop Insurance Production Cost Insurance

I see that this is a very great option for farmers. The thing that they cover a wide list of things is a very big plus. I would choose it after I've studied better their policy and consult some specialists in the insurance domain.

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helenhans
Frequent Contributor

Re: Crop Insurance Production Cost Insurance

Sounds really good. True, I doubt that the pricing is based on cost alone. You can't just buy a tool and a semi-finished product and sell it for as much as you spent on it or creating it. The insurance industry works differently, read this article and you'll see what we're talking about. Everyone pays more taxes than you think. There are hidden taxes that don't show up anywhere. When you buy a product, you immediately pay the taxes that have been invested by the manufacturer. Pay attention to freight insurance for exports or imports. All shipping costs are borne by the buyer, as the end consumer.

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