Here we go with another cropping season just around the corner. It seems that it has been a monumental challenge throughout the winter to get things done in the field because of wet conditions. The recurring thought I hear is that this is mostly a good problem to have. Although progress has been slow, it appears that those wanting to get some farming done have been able to do so. Fertilizer prices have started to subside a bit and energy costs continue to remain low. Unfortunately, the grain prices have also remained in a sideways to downward trend. The wheat crop looks to be in good condition and the subsoil moisture should provide the crop a few weeks of good growth potential after it breaks dormancy.
On the subject of crop insurance, there has been little change this year in the multi-peril coverage. Last year was a big year for change with several different variations of coverage to choose from, along with the farm bill modifications. Whole Farm Revenue Protection is a product that is new this year and provides a risk management safety net for all commodities on the farm. This “WFRP” can be purchased alone or in conjunction with other buy-up level policies. I see it as a difficult fit for this area but we do have it available and if you have interest in learning more, please call for additional information. We also have a new private product available called Added Price Option. This lets the producer increase the insured value on corn or soybeans, essentially buying up the projected price per bushel. APO would then pay the increased value when there is a yield loss on the unit. Give us a call for more details if this is something you are interested in.
We are currently in the price setting period and for corn the full month of February is used to determine the final price. Right now we are estimating it will settle in between $3.85-$3.90. Hail premiums are unchanged in some areas and up in other areas. Please contact us if you would like to review your current program. Our main focus during this time of year is meeting with producers to make sure we have the proper risk management program in place for the upcoming season. Farming operations are constantly evolving and we will assist you to ensure you are properly covered to meet your changing needs.
Thank you again for the opportunity to serve you. We sincerely appreciate the business and personal relationships that we have made through the years. We know you have a choice when it comes to who you do business with. We will continue to do our best at keeping you informed and making sure you have what you need when it comes to protecting your operation. Please feel free to call or stop by if you have questions or comments.