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Rockford, IL | Moran,
I bought this option back in July and was able to lock my 2014 Spring Price at $5.24 with a $1.00 cap. They have been giving us farmer an opportunity every month since July to lock in a higher price. I am not saying this to chastise any farmer that waited until now to lock it in. I just wanted to say that because I disagree with your assumption that they are only providing this now that there has been a huge price drop and the market should be supported now. I tend to agree with you about the current market being supported. For 2013 there are many farmers that locked in a $6.27 Spring Price using this product instead of the $5.65 set by the government. These early pricing products are not subsidized. We pay the full premium and the underwriter takes on all the risk. The fact that is in not subsidized does not necessarily increase the risk for us. It greatly increases the risk for the insurance company but they are willing to take on that added risk because they use the private products as a way to try and earn your multi-peril crop insurance business. That is where they make their real money. | |
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crop ins 4 months buy up any one doing it
