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Small operation marketing plan for 2013?
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rHiNoBaLlS
Posted 11/30/2012 09:28 (#2724813 - in reply to #2724768)
Subject: Re: Small operation marketing plan for 2013?


WC MN
Assuming you are an average farmer or use a "t yield" here of 144 bushels/acre. Here were my numbers from last spring.

65%/93 bushels =$15.45
70%/101 bushels =$20.22
75%/108 bushels =$28.61
80%/115 bushels =$42.03
85%/122.4 bushels =$62.77

So let's take the standard 75% that most guys take here vs. the 85%. That's a net 21 bushels or approximately $121.80 (@5.80). To guarantee you the extra $121 in revenue you must spend an extra $34 in premium. Sounds great right? Well not so fast. I farm a couple fields that beat Tyield every year by 25 bushels. So unless something catastrophic happens, it doesn't really pay to "buy up" the insurance. On the flip side, I have a couple fields that are light so it works out in that situation. Yes, these numbers are optional units and pricing. I am a new producer so I get the Tyields for my APH initially. I wouldn't consider enterprise here as land and weather is extremely variable. North of me 15 miles 185-200 field average was common. South of me 15 miles 80 was common. Next year it could be the reverse.

My father in law farms 100 mile due south of me. His 75% premium is like $11/acre. I am not sure what his aph is but it has to be in the 180's or better.

Anyways, "here" for the most part I will keep the extra $34 in my pocket and find something else to invest in.

And disclaimer, I did have 85% coverage last spring as it was snowy and wet and looked like we weren't going to get out into the field. Turned out to be true. I made one claim due to greensap. It barely paid the premium difference between 75% coverage and 85% because it was only claimed on one field in a far far away section. I realize things are different elsewhere but that's our situation.

Edited by rHiNoBaLlS 11/30/2012 09:30
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