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WC IL | Gerald J., I assume what you are talking about would be a GRIP policy, or perhaps ACRE. With GRIP, the county must come in under expected yield, and with ACRE, the state and your farm would have to be under the expected yield to get a payment. I don't really consider either one of these insurance, since they don't protect from an individual loss, they are like going to Vegas.
I look at crop insurance the same way I look at auto insurance or building insurance. I don't buy auto insurance hoping that I'll wreck my car. i don't buy insurance on buildings hoping they'll burn or blow down. It's all about risk management, and how much risk you can or are willing to assume. Personally, I'm not in a position that I can stand a huge production loss and continue to operate, so I use the insurance as a safety net. Most of the claims I have had have been due to price change from spring to fall, only twice have I had a yield claim.
Bottom line, every operation is different, every person's level of risk that they are comfortable with is different. There is no one right policy or answer for all operations, even though it appears that may be where crop insurance is headed by 2011, with the number of policy options probably going from 6 to 2. It appears that there will only be GRIP and an APH policy with the option of buying up revenue coverage for 2011. Time will tell. | |
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is there anyone who does not carry crop insurance?
