Agricultural News
Getting the Best Deal Out of Your Crop Insurance Could Mean Thousands of Dollars to Your Operation
Fri, 06 May 2011 6:36:47 CDT
Farmers always have a lot of decisions to make- but the decisions this spring are tough- and could mean a lot of money made or lost over the next few months. For producers who have a wheat crop that has been impacted by the dry weather, one decision that may have to be made is whether you wait til the crop, such as it is, is ready for harvest- and then allow a crop insurance adjuster to come in and rate your field- or should you allow the crop insurance folks to adjust it now- which if you elect to adjust it now- it could mean that you could move to plant a summer crop on those failed acres (assuming you have moisture to do so.)
We talked with Scott Bulling of the Oklahoma Farm Bureau about all of the choices that farmers must make regarding crop insurance claims with the conditions we are facing just days away from harvest in some locations. You can hear our conversation with Scott by clicking on the LISTEN BAR below.
Some keys to dealing with crop insurance this year:
There is no such thing as a "zero" yield. Bulling says that if there is anything out there in the field- the adjuster will assume ideal weather from this point on and predict some level of production.
The adjuster will always assume ideal weather from the point of adjustment to expected harvest. That means taking an adjustment too early will result in too optimistic of a prediction for many fields. With current wheat prices, an appraisal move of three bushels down will mean twenty dollars or more per acre in your payout- which is substantial.
Don't do anything with your wheat except harvest it until you make contact with your insurance agent and get someone to look at it.
The price floor for wheat for 2011 has been set at $7.14 (for the revenue based policies) and the price that crop insurance payouts will be actually figured on could go significantly higher- depending on what wheat prices do in the month of June.
Finally- Scott Bulling counsels patience. You may have to wait until harvest time to get the best appraisal- but with prices at these levels- that may be the best way to maximize your return. And, there will be a lot of claims and a limited number of adjusters- so it could take some time to work your claim.
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