Thanks for the link, BA.
Looking at finalizing my crop insurance, and I am thinking about just insuring bushels, and not revenue. Even with utilizing enterprise units, to ensure 85% full revenue and yield, I end up with about $60000 in premiums. If I didn't have enterprise units, and three entities, and three counties, I would probably have close to $75000 in premiums.
If I go with mainly yield guarantees, where I would get $5.90 for each bushel of corn under my guarantee , and $14.33 on the soybeans, I can cut my premium down to $20000. $40000 is real money, and even with a total disaster I would stay in business with the spartan budget.
I know my crop insurance agent hates this idea, though. I think they used to make 20 percent on the premiums, and still make over ten percent commissions. Anyone that knows, please weigh in.
Revenue protection makes a lot of sense when the spring price is higher than what you think the fall price will be. I don't think that is the case here....my goal is to beat my yield guarantees, do a spartan budget, and make as much money as I can this year, next year, and maybe the year after ...until this bubble bursts like they all do. If my input suppliers don't like it, tough beans.
Same goes with fertilizer costs for next year....may put very little dry down, and go with split nitrogen applications. We can win at this...we just have to think a little outside the box.
