Crop insurance decisions begin with cost of production in mind
A crop insurance specialist encourages farmers to start with cost of production when making risk management decisions for 2022.
Tom Timko with Compeer Financial says the numbers have changed a lot in the past year.
“You’re going to find those production numbers are quite a bit higher. And keep in mind that a lot of (farmers) probably got some of those inputs purchased before they went way, way high, but our costs are still substantially higher. (So) farmers need to do some math and take a look at that.”
He tells Brownfield most producers are considering 80 to 85 percent coverage based on their area and average production history.
“I’m going to look at those costs and of course the coverage amounts or liability that I get with those, then I’m going to take a look at some of the other subsidized products that are at a higher level.”
He says the Enhanced Coverage Option is a crop insurance tool that provides additional area-based coverage for a portion of the underlying policy deductible.
Timko made these comments during a Compeer Financial What’s Happening with Crop Insurance podcast, a content partnership with Brownfield.