Crop Insurance Trends

Crop insurance policies are currently being processed, but the real picture won't emerge until planting is complete. The key date is July 15 for the acreage reporting deadline. Once reports are submitted, insurers can begin to analyze how much coverage, including wheat policies, has been used, and what future demand may look like. In the meantime, Country Financial Agency Manager Doug Yoder is watching for early trends.

“I'll be shocked if we don't see new record usage of eco Enhanced Coverage Option that's a add on product that farmers can add on top of their, let's say their RP, Revenue Protection policy based on questions and comments, discussions I was part of this winter with both farmers and crop agents like so I'd be surprised if we don't see record levels of that, of usage, and part of that is because some good claim history that we saw from previous crop here and again, just some of the times that you're mentioning, the times that we're in right now, very tough ag economy.”

While February prices came in similar to last year, rising input costs may leave some farmers and their lenders concerned about whether coverage levels will be enough. According to Yoder,

“The add on type of product, like an ECO, for example, has become very popular, plus the fact that this is the first year of the new subsidy levels for that product, the government increases subsidy levels for ECO to 65% to make it more affordable.”

Which he says is good timing, given the current ag economic situation.