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| What crop insurance does for you if you sell it at $4.00 (or $5.00, etc) is guarantee you fall futures price if the market goes higher, and you don't produce the crop. The other feature of revenue coverage is, if the price is lower at harvest, your guarantee in bu. goes higher, to "guarantee' your revenue per acre.
If you waited to sell until $4.00, you may be right, you don't need insurance, or forward sales, or anything else. Wish you would have told me to wait last summer to sell.
Also, as I said in the post, I "grabbed" the first 06 actual yield example in my database. I did not want to use 07 premiums to compare with ten year indemnities, since if we had $4.00 spring corn all ot those years, the indemnities would have been much larger too, or does any of this matter?
Rob Heyen | |
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crop insurance
