This probably varies by state, or maybe insurance company. But around here, they take an average of I think the last 5 years yield, and you are guaranteed a percentage of that. So, just for example, if our corn averages 130 bushels per acre, we will insure it to guarantee a 100 bushel yield. So if it makes less that 100, insurance will pay the difference up to 100.When we have really rainy or really dry years with crappy yield he's said "Yep this is going to be an insurance year". How does that work? Like how does insurance value lost yield?
There was another time a couple years ago (i think) where they had so much rain they couldn't get all the corn planted on time (by June 25ish IIRC), and they were trying to figure out whether to plant beans or claim insurance on the corn they couldn't plant in time.
It always does. It's a bs inflation tactic so Bayer and company can piss back and forth funneling money to other countries and all it does is fall on you guys heads when it falls out and your inputs are tripled and profits halved, hence the subsidy checks.Yeah, the prices are great, but this will be short lived, and it will do more damage than good.
Side business is key. Old timer I know raises beef cattle on 600 acres in Monroe, Wis. He started working directly with a processor and got in tight with a handful of restaurants in Milwaukee and Chicago. Makes deliveries weekly. He also gets in a van trailer of alfalfa cubes every week from Nebraska, packages them in 50# bags and sells to local feed stores. Says that nets him $80,000-$110,000/year after expenses and paying his four employees that run the packaging operation.Mannnn. I love this. Grew up the same way but never really got to be a part of it and when I tried I always got brushed off so I started the tire truck. I'd love to have what you got goin on but it's alot more to deal with than everyone thinks. Keep the side biz every successful farmer I know has somethin to carry him through hard years and after the spike this years gonna create your gonna wanna put as much if that 6 dollar corn into equity that you can get back out if need be as you can.
If you can bale smalls correctly and sell it to horse people...I really want to start getting my hands on some equipment to drag up north with me. If I could get the already cleared 40 acres cleaned up again I’d love to put an alfalfa crop in with the hay prices we’ve been seeing lately. Jokers selling 8 buck small squares around here and get it all day.