Insurance against poor crop yields helps farmers stay afloat during bad weather years. But calculating your short yields can be tricky.
We can use some short-cut math to arrive at a realistic number. Here's an example from the drought of 2012:
- Short bushels paid at the "higher of" spring or fall price. (This is the short-cut math part. It's really revenue guarantee recalculated.)
- Example: 185 APH x 85% = 157 bu guarantee
- You raised 100 bushels so you're short 57 bushels
- Example fall price (October 2012) $8.00
- 57 x $8.00 = $456 per acre
- Cap on fall prices = 200% of spring price
- $5.68 caps at $11.36
- $12.55 caps at $25.10
As always, check with your crop insurance professional before you do anything.
NEED TO KNOW!
- Don't cut silage until you have contacted your crop insurance professional!
An adjuster will come out and field-appraise your bushels and add them to your total yield, or yield on that unit.
- If you have any old grain in your bins, call your adjuster so he or she can come out and measure BEFORE HARVEST!
- Notify your adjuster as soon as you think you may have a loss so your adjuster can file your claim right away.
For more crop insurance information, check out our crop insurance video here .