Taking the risk out of grain storage.
March 28, 2019 By Global Ag Risk Solutions
Deciding to store grain and waiting for the markets to pick up can be a stressful decision. Farming sometimes feels like risk after risk, with nothing helping farmers work towards a really great crop, and an excellent profit. Storage is one of the risks that traditional crop insurance has never taken into account.
On his 9,200-acre family farm, Jeff Bean grows lentils, canola, and durum wheat. From seeding to harvest, he sees his hard work paying off by the bushel, and in the fact that the next generation of his family are now involved in the business. But, along the way he realized that his crop insurance was limiting the way they farmed and making it difficult to plan ahead.
“Our old crop insurance was yield-based. We were finding that we just weren’t getting the coverage that we needed from it. We weren’t in a position to be looking to next year. We were wondering where the funds were going to come from to put the crop in.”
When Jeff compared his traditional crop insurance to what’s offered by Global Ag Risk Solutions, the decision was easy. “Global Ag Risk just made sense. We went over both systems and realized we had to protect our farm in a different way.”
Now when Jeff decides to store his harvest and try for a better price in the spring, he knows he’s covered. Global Ag Risk Solutions is gross margin insurance, which covers his input costs and revenue, including losses in the bin.
Global Ag Risk Solutions helps farmers unlock their agronomic potential by covering their three major inputs – fertilizer, seed, and chemicals. If input costs go up, like Jeff ’s often do during wet years, coverage increases right along with it, with no change in premiums. Jeff and his family get to farm the way they want, without having to worry about the cost of that extra pass they hadn’t planned for.
Even if heating threatens that bin of lentils, Jeff ’s revenue is still protected. With insurance that works for him, the family farm can plan for success year after year with less risk and better profits. “I mean, insurance is insurance – you hope you never have to use it. But I can sleep a lot better at night knowing that my bottom line is protected.”