When farmers think about crop insurance, weather risk usually comes to mind first. AgCountry Farm Credit Services Crop Insurance Specialist Emily Rymerson says price risk deserves just as much attention. “Nine times out of ten, they always tell me that it’s a weather peril of some sort. We’re dry. We’re going to have prevent plant. We had some hail this year. The wind is relentless,” said Rymerson. “One of the biggest perils that we actually run into is pricing. The markets are one of our biggest perils, and we can’t control it.” With tight margins and high production costs, Ryerson said crop insurance can be structured to protect more than catastrophic yield losses. Supplemental coverage can help protect the upper end of a farm’s revenue guarantee, where profitability may be at risk from relatively small price or yield declines. Ryerson said producers should start with a strong multi-peril policy and then consider supplemental coverage based on their individual cost of production and risk. Rymerson spoke during a crop insurance presentation at the Big Iron Farm Show.
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