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NE CO | I wonder if the insurance companies have yet priced in risk for the current volatility. I think Harvest Price Option is a good value at this time.
As an aside, sometimes we get too wrapped up in all of these options. The insurance people have priced different options at the price that they think covers their risk with some profit built in. And sometimes offsets get built into the premiums that make one option a better buy than others. But the key is to choose the program that protects against your perceived risks, whether it is production or price related. I worry about drought and protection against a price rise for any contracted bushels. I insist on HPO. I think a GRIP policy will provide almost as much coverage against drought as an individual plan, so am considering this option. In the end though, I'll probably go with an RA plan based on the enterprise unit. Today that looks like the most cost effective plan to meet my needs. But I'll bet that at the end of the season there will have been a better option. | |
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Crop ins...harvest option
