crop ins.

as usual ins. companies have loopholes to use to their advantage,we have price protection added to our crop ins.this year it guarantees 5.80 a bushel this year elevator prices have been from 4.45 to 4.95 during harvest,haven't sold any yet ask our agent about it before we sold our base amount and he explained that the average southeastern market price wouldn't set until the end of October, and if we sell now a 4.50 and the average is say 4.70 they will pay the difference from 4.70 to 5.80 not the 4.50 to 5.80,on the other hand if the average is 4.00 then they will pay from 4.00 to 5.80 even though we sold for 4.50, does this sound correct ,problem I have is we will lose due to other area prices if their's were higher for what ever cause and push the average above our selling price during harvest

Your are finding out the fun of "FARMING the Insurance" the prices will be an average so your not going get exactly the difference in your sales price and the guarantee.

The best way is to forget you have the darn insurance. Sell your crop to maximize your profit. You will not hit all the highs but should also not hit all the lows either.

I think corn price will fall as harvest goes on. The numbers I have been hearing are going to make this a large crop. Soybeans may hold and even go higher as the yield numbers are turning out lower in some areas than expected.

Either way I think that the insurance deal is going to collapse real quick. It is not popular with too many people. Farmers are not the darlings of the populaces eye they where in the 1980s. So with the Federal Government being broke, the money will not flow to agriculture like it did in the past. Truthfully it should not either. We have had record incomes from grain sales the last few years. The average working person has not had that windfall. So why should they have to have TAX money go to people in cyclic business that just made record money???

Back to your original question. I think that there will be a posted county price much like the loan rate was in years past. This will be an average for the county you live in.

You need to get an new agent because your agent doesn't have a clue how it works.

The fall or harvest price is calculated from the futures market. I think its The average of the November futures market during the month of October. This will set the price used to calculate your claim. What you well your drop for has nothing to do with your claim unless your grain has quality issues.

if your agent is not exclusively a crop insurance agent, they don't know what's going on.

gramps