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Indiana | Do you have harvest price option on your crop insurance? If so here is how it would work.
If you have a crop failure and price goes up your new revenue guarantee is the higher fall price. This means crop insurance will pay more than your spring guarantee (which is close to today's price).
The only time you would have to pay off a contract that you can't deliver on is if the price goes up. But your crop insurance will go up too Which would offset the buyout of the contract.
Say you sell for 3.80 today and price goes to 4.80. Crop insurance would pay you on the 4.80. You would take $1 a bushel and pay off the contract. The remaining $3.80 would be used to pay off your loan.
Make sure you know your options with buying out contracts or rolling them to a new year. End users have different policies regarding these situations.
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"Sell up to your bushel guarantee"
