Thought I would pass this along. There is a crop insurance co that has a new product...at least for us, has sold it for
a number of years in other states. Think its available for corn and soybeans.......
It's called ICE or APO....basicly you can buy up your price level....dependent on what your level is, as to what you go
to......but, running the numbers thru, looks like an 18 to 20% premium rate......i'm not so sure if that's a good "return" rate.
This is a private product, and you get no help on it, it's basicly an add on.
Problem is, this is on an actual loss only, not on a price (revenue) loss.
There is another product also being offered, Price Flex....again supplemental....you slect a time to set your price.
This one will kick in on a revenue loss.....in theory you could use this to your advantage if you are an astute student
of the markets, but if you guess wrong, you will reveret to the "set" RP (currently being set), if your time peroid is
lower than the RP level.....sound like a policy just for me.....i guess wrong, will not get any more, and still have to pay
out even more for insurance !!!
I think the key this year, in my humble opinion, is possibly buy up to the highest level, with revenue protection, yes i know
the sweet spot is about 75%, but if we see a melt down in commodity prices......or worse in a situation like now, we either
have the flood of the century, or a drought........all depending if you are looking at sea temps, looking at the sunspots,
counting years with years with and without el nino or la nina......or how many hairs the tomato worms have on their
backs, of the numer of fleas the dog has, how deep the snow pack is.....how much ice is on lake michigan..........
If we don't have a crop, and prices go up......we'll really be sick.
i havent talked to the insurance people much.......don't know if people are leaning towards higher coverage, or to
save money, go minium.
