BILLINGS, MT (September 15, 2016) – Crop insurance is a big issue in today’s Agricultural industry; especially federal crop insurance. But today farmers and ranchers have a new crop insurance program that isn’t a one size fits all. And it wasn’t developed by an insurance company to make money nor is it governed by the federal government.
Lee Friesen is with Diversified Crop Insurance in Olivet, SD and told the Northern Ag Network’s Russell Nemetz that producers are really going to like this new Production Cost Insurance.
Simply put, it's a multi peril product that insures your input costs plus revenue and it's designed with every farmer in mind.
The plan is simple:
- Your three major inputs – fertilizer, seed and chemicals – are covered, plus a specific amount of revenue per acre.
- As your input costs increase over the year, so does your coverage. There is no ceiling, and no effect on your premium – meaning you can do what your farm needs, whenever it needs it.
- Payouts happen quickly. So, if something happens, you won't have to wait for your money.
- You can use this insurance as collateral with major banks, and borrow against it.
For more information about Production Cost Insurance, click here.
Source: Russell Nemetz-Northern Ag Network
Photo courtesy of USDA NRCS