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Frequent Contributor

crop insurance?

what does everyone with grip crop insurance think about doing for 2011? If you have had it in the past or in 2010  will you pay the big prem. and go with the 90/100  or back off somewhat, also do you think the 85% combo is the way to go because it is cheaper?  I like the grip because typically we can beat the county average, but then again it is not really crop insurance, but with the highest level at about $85 acre you can get a guantee of close to $1600 acre,    with the possibility of claims much sooner than with the combo and at much higher payouts. Lots of thinking for about a week. I have been told by the U of Ill    economist to always take the highest levels of any policy . what are your thoughts .thanks

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5 Replies
Advisor

Re: crop insurance?

   If you consistently beat the county average why even buy it?  How often do you collect on it?  Having an extra $85 an acre could rent a lot more ground.

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Veteran Advisor

Re: crop insurance?

A friend of mine attended his crop insurance meeting last night, in Iowa. He was pleased with the rate offers:

 

Corn=$6.01

Soybeans=$13.49.

 

Mike

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Veteran Advisor

Re: crop insurance?

Please enlighten me on how you spend $85 and get a $1600 per acre guarantee. Sounds pretty fantastic.

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Frequent Contributor

Re: crop insurance?

Grip insurance is a unique plan in that it uses a county expected yield x the Dec corn cbot price x 1.5 .    So in my case the yield is 182 x 6.01 price x 1.5  factor. That being $1640.73.     NASS  will then come out with the final yield in March 2012. One can also use the fall price over the spring price if it is higher, but you have to buy it now with the plan.One also has to pick  two levels of price and insurance,(talk to your insurance agent to have it explained better )       I bring this up because about 5 years ago the gov said this plan was the way to go. There is no paper work by the producer which means less chance of fraud.    If one has a relatively high yield average over your county  and most of your county is poorer ground then you could beat the county yield , have good yields yourself , and still collect whereas the ra,crc and now the combo insurance would not pay out. But at the same time , one of my fields could be wiped out and i would not collect a dime. It is not for everyone so please talk to your agent.

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Advisor

Re: crop insurance?

  I talked to my agent today and we are at the same on corn but $13.61 on beans.  Was offered an extra $20 an acre replant policy on beans for 66 cents an acre.  About $27 an acre for beans insurance.

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