Tips For Buying Crop Insurance For Winter
Crop insurance is a critical way that farmers can make sure that a bad crop, weird weather, or other problems don't cause them to go bankrupt the following year. It essentially ensures that an insurance company will help cover part of what you would have made on your crop. This can keep your farm solvent. Here are some tips for purchasing crop insurance in order to make sure that you are getting the highest value for your money.
1. Look for Federal Policy at 80% Coverage or Higher
Your goal is to make sure that as much of your crop is covered as possible by the federal government. The level at which crops are covered changes each year depending on the current administration's fiscal policy. You want to make sure that you buy a plan that will last as long as possible when the federal policy is going to cover 80% or more of your crop. If you can buy insurance for multiple years at this rate, you will be sure to have a decent amount of coverage, even when coverage drops to 60% when the government's budget changes.
2. Use Enterprise Unit Structure
Try to use enterprise unit structure on certain crops of your farm in order to widely apply federal subsidies. This will allow you to get the maximum amount of money from the government, as well as help make your crop a lot more profitable. You can apply trend adjustment at a per acre to feed to your farm's policy in order to increase the overall amount of specific crops that you are trying to produce.
3. Consider Alternative Pricing Models
Finally, be sure that you are considering alternative pricing models. Alternative pricing models are essentially pricing models for insurance plans that are not offered by the federal government. These prices tend to be highest when crops are growing in the spring and early summer. This is due to the fact that insurers are able to look at what is being grown at this point and more accurately predict trends to make their insurance sales successful. Buying these plans can help net you more money that government issued crop insurance.
For more information, talk to a company that specializes in crop insurance, especially for the winter. Winter is the most dangerous time of year for your crops and a little bit of insurance can give you a high level of peace of mind. For more information, visit a website such as http://www.wrg-ins.com/.