The Cost of Cutting Crop Insurance In Personal Budgets

In June, the government announced that they were going to increase the premium support for the subsidy for the enhanced Coverage Option Program to 65% Doug Yoder, Agency, Manager of a crop insurance company called Country Financial, talks about the importance of not cutting crop insurance premiums during these hard financial times for ag producers.

“I will also tell you that in this negative net farm income environment we're in where inputs are still high, but the prices have plummeted quite a bit, there's no denying in my mind that farmers got to push the pencil pretty hard this winter and cut costs any way they can. But I always tell them this in this environment, I really hope they don't voluntarily reduce domain coverage, crop insurance, bar none, is their main safety net.”

In addition to cutting costs where they can, Yoder says producers will be taking into consideration the environment that we are currently living in.

“When you look at inputs such as seed and fertilizer and chemicals, cash, rent, this is a very cash heavy endeavor that they're in so and when the net farm incomes are projected to take a hit this year and be negative, then that obviously is a that's that environment I was talking about, where they're gonna have to push the pencil while they can to be profitable next year.”

Additionally, Yoder says, without a new farm bill, we continue to operate under an extended Farm Bill, which means that the Title One commodity programs will not be providing producer support this year.