2011 CROP INSURANCE
just ran the tentative numbers for my farm operation, on the 'farmdoc" calculator, and it looks like pretty much a "no-brainer" for the risk vs. reward.
I can insure 80% of the average yield on my better soils as enterprise units with fall revenue protection, and then can insure the lower yielding soils for 75% of the yield as optional units with fall revenue protection and keep my premium cost at an average of just over $13 an acre. For this, I get just under $600 an acre guaranteed across the board, good soils and bad, corn and soybeans. Would not want to be paying $300 cash rent, though, and trying to make things work with this level of coverage. But my lower yielding soils are not worth anywhere near that amount of rent, and I own the better farms.
right at 2% premium for dollars insured. And I can sleep peacefully through summer storms, early cold snaps, etc etc. And my actual amount insured might rise to double that if fall crop prices take off. Not a bad deal. Gives me some confidence to sell some of that $6 new crop corn and $13 soybeans.