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Producers locking record levels of crop insurance protection

A crop insurance officer says volatility in the ag sector is allowing farmers to lock in record levels of revenue protection.

Josie Wolff is with Farm Credit Services of America. “We’re seeing some of the highest crop insurance guarantees because of higher commodity prices and customers are taking advantage of that and locking those in.”

She tells Brownfield producers need to know the cost of production to determine the amount of insurance coverage for 2023. “Producers have an opportunity with their risk management to preserve their working capital for times when margins are thinner than currently projected.”  

And, Wolf says, one example would be forward pricing. “The downside risk right now is greater than the upside potential with these commodity prices.  It’s important to keep in mind that the revenue price floor protection expires once the harvest prices are announced meaning on marketed grain after harvest includes price risk.”

She says crop insurance programs can be complex and suggests working with a qualified agent and banker.