Know break-even and maybe take a profit
The head of sales for the Farmer Business Network says it’s very important for farmers to know their break-even point when making crop insurance decisions.
T.J. Wilson says farmers should make sure to include all the costs of production they can when making the calculation.
“Be very conservative on the expense side of things and estimate high. Using your 10-year APH is going to be something that’s going to be very conservative on the yield side to be able to get that good price-per-bushel that you need to cover all your costs.”
He says this could be a year when farmers pay themselves.
“Given where crop insurance levels are looking to be this year this is one of those rare years where you may be able to take your crop insurance and guarantee yourself a profit across-the-board and guarantee yourself a price above your break-even per acre.”
Wilson says it’s definitely a conversation growers should have with their risk management advisor.