Why crop insurance?
The first step in the decision for 2008 is to think about the reasons for considering coverage in the first place. For most producers, there are four possible motives: • Cover input costs. These costs have increased substantially from prior years, up as much as 30 percent for some. And producers incur most input costs before the crop is planted. • Back up a marketing plan. Market opportunity is driving many pre-harvest sales, and ethanol contracts require grain delivery. • Meet feed needs. For livestock producers a short crop could mean paying higher prices to replace the lost bushels. • Preserve current equity. Insurance can help minimize the impact of a short crop and reduce risk for future generations. “Some producers may focus on only one or two of these factors, while others must consider all four to some extent,” Chambers says. “That’s why there’s no such thing as ‘one size fits all’ when it comes to this important decision.” Choose trusted advisor With crop insurance rising in i
