|
Rockford, IL | By having crop insurance it changes and guides me to when I should make cash sales and if that cash sale actually benefits my operation or hurts it. I like that. I also manage risk on the board and it helps guide me as to what price levels to use on the board. Basically what I do is I track my insurance along with any cash sales and marketing and then whenever I want to make any decisions I look at it on a grid and it shows me how that decision can perform. Since I have done this it really have saved me a lot of money on hedging decisions throughout the year. That is one way it saves me money marketing every year. My hedging performance has also greatly increased by using this method. By not having good insurance levels it does make the cost of marketing much higher because I have to use more expensive methods/price levels of protection. Long story short I view insurance as a cost that works for me whereas my input costs may or may not pan out such as high priced seed or another fertilizer application and so on. I do agree with you on buying up the hail for top dollar loss that you will almost never collect from regular crop insurance. Another thought is to buy some lower level MPCI coverage and invest a little into the price related private insurance products offered by the insurance companies. they have worked well for me so far over the last three years. | |
|
Restarting the USDA
