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Durant EC Iowa | Just got back from a crop insurance meeting. What I thought was going be a lower premium as most on here were saying because of a lower corn price turned into a surprise. Projected spring prices corn $3.90 vs $4.15 last year, beans $8.80 vs $9.73 last year. My specifics: Eastern Iowa 179 APH; RPTA Optional Unit 85% level; corn last year premium $18.45/ac. This year $26.94/ac. That is roughly a 46% increase in premium in what they said was supposed to be 7-10%. The reason for the higher premium, even though Iowa did not have a lot of claims last year, was they said because it was averaged over the last 3 or 4 years. Right.
One other point, at another meeting a presenter mentioned that he had talked with a fertilizer representative at a conference and asked him why, with the cost of natural gas being so cheap, was some of the fertilizer prices not lower than they are. The guy's response was because they charge what they can for the product. Right. So in other words, if enough farmers buy it at the price they are offering to sell it for, then they are happy. Kind of like every other input cost?
I know fertilizer is important, and so is crop insurance for most folks, but don't you feel like we are being used to wipe the bottom of the frying pan? Farmers can't win for lose. Anyone else have any input on their insurance costs?
Edit to add: Volatility factor 0.21; $31.79 less coverage per acre in 2016 due to lower price. Quote is on a printout given to me.
Edited by Yogi 2/5/2016 20:16
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Farmers can't win for lose: now crop insurance
