Crop insurance is the foundation of your risk management plan. With a crop insurance policy called Revenue Protection, you are protected from a bushel loss and/or a price decline.
It is common to see weather premium built into the market in the spring and summer timeframe. How can crop insurance help you take advantage of high prices?
You can sell the number of bushels up to your crop insurance guarantee.
What if I don’t have the bushels to deliver to fulfill my contract?
3 options that grain buyers may allow:
- Defer delivery
- Buy grain from another source and deliver in your name
- Settle contract financially
Farmer Mutual Hail has a very interesting and informative podcast that discusses this topic. They brought in Jake Moline from StoneX to discuss how crop insurance can help you market your grain given the current market environment.
Click on the link below to listen:
FMH InsureCast
Impacts of a High Price Environment – Coverage and Grain Marketing
At the end of the podcast, they mention Margin Protection which was a new product in 2020.
Here are a few links to my blog post that provide an overview of Margin Protection:
Top Reasons To Consider Margin Protection
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