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| Roger,
The quotes you were looking at used a $7.50 per bushel coverage price, not $5.65. Growers get to choose the dollar coverage per bushel they want and your quotes used a high value of $7.50 per bushel.
With respect to your federal crop insurance, your enterprise units give you coverage of $960.50 per acre for a cost of under $20/acre. That premium is subsidized, and do you really have $960/acre of coverage? In order to receive $960 per acre in payments this year you would have to produce zero bushels of corn across all your acres which is an unlikely/impossible scenario given you are carrying a 200 bushel APH. In reality your enterprise yield will probably never fall below 70 or 80 bushels in your worst year. So if your worst case is 80 bushels then your maximum insurable loss is about 90 bushels. At $5.65 per acre you are covered for about $500 per acre through the federal crop program, not $960.
Finally, with enterprise unit federal crop insurance you have no field-level coverage. Individual fields can produce a zero and you won't necessarily be in line for a claim. One of the benefits of TWI is you can pick and choose what fields you take it on. You can get additional coverage through TWI on the more weather-sensitive fields in your operation and leave other fields to federal crop insurance alone. Certainly understand if you feel like the product is not a good fit for your operation as a whole, but I imagine you have some fields that you know are more sensitive to particular weather conditions that could use some field-level coverage rather than just being covered as part of your enterprise unit structure? | |
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TWI deductible/premium
