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Insuring Your Marketing Losses


Have you ever been burned by forward marketing your grain?  You’ve heard the stories – you work harder than ever only to get to the end of harvest and discover that there aren’t enough bushels in your bin to fill your contract?  Or the quality doesn’t match what you were contracted to provide?  Or did your grain literally get burned, stopping you from fulfilling your side of the contract for marketing your grain?

Rempel Insurance Brokers Ltd is excited to offer a gross margin insurance product that protects your farm’s bottom line based on margins, rather than bushels.  This product provides a limit of insurance that includes your farm’s input costs (seed, fertilizer and chemical) plus a margin amount per acre.   Now you can be protected from marketing losses that can erode your farm’s margins.  This seems too good to be true!  How does this work? 

A gross margin insurance policy provides a dollar amount per acre on top of the actual input costs for your crop.  If you are in a claim position at the end of the year, the calculation is based on your revenue from grain sales, which may be reduced by the amount of marketing losses that you suffer for that year’s crop.  If you are in a claim position following this calculation, you will be paid the difference between your actual margin and the level coverage that you have chosen. 

Growers who are purchasing gross margin coverage are using their protection to get more aggressive with marketing their grain.  When your bottom line is insured properly, marketing risks are not as concerning and growers are more likely to improve their farm’s profitability.

 The results are continuing to pour in – farms insured properly with this private insurance option are: more aggressive (and profitable) while marketing their grain, making their agronomy decisions based on what is best for the crop rather than whether the bushels per acre coverage is overspent, and finally, farmers have the peace of mind that allows them to sleep at night knowing they have protection to keep their farm operating regardless of the perils. 

Rempel Insurance Brokers Ltd. is proud to be able to offer this unique solution to farms across Manitoba.  For details on how you can protect your farm’s bottom line with a private insurance option, please contact us. Be sure to seek advice and purchase insurance from those who understand your business!