A friend of mine years ago said crop insurance is great for a disaster if you have otherwise top yields. Also, you still need to have a handle on profitability. Around here 75 percent coverage is the highest the insurer will go. If you get 80-85 percent of your normal yield you will not receive any compensation to cover costs. Further, revenue protection is great in a falling cycle where the insurance company is offering rates based on the previous crop year even though the price is clearly cycling downward. Trouble is that cycle is short lived. I am not saying that insurance does not have a place as a risk management tool but it is not a magic bullet that is going to head off structural profit problems with your farm. Lastly, I would say that the companies do observe your yields and make adjustments to your yield average for coverage purposes. If you started off with a 50 bushel average and go through a 5 year period where you are 97 percent, 65 percent, 80 percent, 62 percent, and 91 percent of 50 bushels your yield base will be adjusted down to reflect your recent history. A lot of farms in the East including mine often hit that gray area where you fall below your average but not enough to collect on your insurance. The net effect is that your yield base suffers erosion in a subpar production cycle. Everybody needs to run their own numbers to truly know how effective insurance will be for them.
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Today's Featured Article - Product Review: Black Tire Paint - by Staff. I have been fortunate in that two of my tractors have had rear tires that were in great shape when I bought the tractor. My model "H" even had the old style fronts with plenty of tread. My "L" fronts were mismatched Sears Guardsman snow tires, which I promptly tossed. Well, although these tires were in good shape as far as tread was concerned, they looked real sad. All were flat, but new tubes fixed that. In addition to years and years of scuffing and fading, they had paint splattered on
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