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 - Hydraulics - Cylinder Anatomy - by Curtis von Fange. Let’s make one more addition to our series on hydraulics. I’ve noticed a few questions in the comment section that could pertain to hydraulic cylinders so I thought we could take a short look at this real workhorse of the circuit. Cylinders are the reason for the hydraulic circuit. They take the fluid power delivered from the pump and magically change it into mechanical power. There are many types of cylinders that one might run across on a farm scenario. Each one could take a chapter in
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