I am amazed at the amount of risk farmers are accustomed to dealing with each and every year. I am also amazed that farmers can sleep at night knowing that their crop may not be the same when they awake the next morning. Some farms are very careful at maximizing all insurance options available to transfer this risk. Others are scrapping government crop insurance programs and replacing them with their carefully tailored self insurance solutions. Regardless of which side of this coin you fall under, there is a new solution available that is bound to intrigue producers on both sides.
While there are many tools available to farmers to manage risk, this newer tool, available to Manitoba farms, is a private crop insurance option that provides coverage based on your farm’s revenue, rather than bushels per acre. It is not subsidized by government funding, it is not based on your area averages and neighbor’s yields, and therefore it is a truly unique product available based on your farm’s past results and future plans.
The concept of this protection is quite simple. To explain it in one sentence: you purchase a dollar amount of coverage for your farm that provides the lowest gross income amount that your farm will receive this upcoming growing season. For example, if you purchase $2,000,000 of gross margin coverage, that is the least amount of income your farm will generate this growing season. You can also include coverage for your inputs (seed, fertilizer, and chemical) that will cover your input costs regardless of the amount you spend on them. This flexibility allows you to shoot for the moon each and every season, knowing that the coverage for your crop grows with each dollar you spend to maximize your profits.
Covered perils stretch beyond what is offered elsewhere; extending from the common perils of too much moisture, not enough moisture, too much heat (fire), not enough heat (frost), fire from the sky (lightning), ice from the sky (hail, sleet, snow), too much wind (hurricane, tornado, damaging winds), insects attacking your crop, disease attacking your crop, or the dreaded crop in the bin that heats while in storage. With such a broad spectrum of coverage, producers are encouraged to shoot for substantial margins each year, knowing their bottom line is properly protected in the event of loss.
The results are continuing to pour in – farms insured properly with this private insurance option are: more aggressive (and profitable) while marketing their grain, agronomy decisions are 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 around.
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 at the information below.
Be sure to seek advice and purchase insurance from those who understand your business!