redneckchevy9 Posted October 11, 2018 Share Posted October 11, 2018 How does crop insurance exactly work? There are several fields in my area that are under water each year except for 3 or 4 acres which is higher ground, yet the farmer plants those fields each year. I wonder all the time, what is the point of even putting the planter in this fields. Link to comment Share on other sites More sharing options...
dale560 Posted October 11, 2018 Share Posted October 11, 2018 2 hours ago, redneckchevy9 said: How does crop insurance exactly work? There are several fields in my area that are under water each year except for 3 or 4 acres which is higher ground, yet the farmer plants those fields each year. I wonder all the time, what is the point of even putting the planter in this fields. Not very well if you are farming for a insurance check. You are on the way to foreclosure. Now insurance is crazy to explain. But generally idea behind bto is to have enough units in different sections and areas to juggle actual yields. Meaning you could have a field not so good that doesn’t qualify for insurance payout. You take some of that yield move it to better fields you can lower that yield enough to collect. But generally if you collect on insurance your yield and coverage goes down. Myself if I owned a lot of land I wouldn’t take insurance. It is hard to collect unless you have hail . A wiser thing is take that money spent on insurance payoff collateral if you have a bad year bank will work with you if high equity. Just remember nobody built a legacy farm and paid for it off of insurance they are paid for by yield and smart money management Link to comment Share on other sites More sharing options...
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