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It Pays to Protect Crops and Revenue: A Case Study

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Educational Opportunities: 
Articles
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Grain, Young, Beginning Farmers
Home > Education & Events > February 2019 > It Pays to Protect Crops and Revenue: A Case Study
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Crop insurance has long-protected against unforeseeable forces of nature that could cause damage to vulnerable plants each year. Crop insurance can also be used as a tool to protect your operation from price volatility – one of the biggest nonweather threats to modern-day farming. Here’s how one Compeer Financial farmer met his break-even after a difficult weather year and a dip in prices:
 
Case Study Example: Revenue Protection Return on Investment
A 1,000-acre corn farmer with an average production history (APH) of 200 bushels per acre insured his corn at 85 percent revenue protection (RP). The projected price for corn was $4, and the bushel guarantee was 170, which gave him a revenue guarantee of $680/A. His total revenue guarantee was $680,000.
 
After a tough year of spring flooding, late-season drought and deflated commodity prices, the farmer was struggling to make a profit. He harvested 150 bushels with a harvest futures price of $3.50, so his harvested revenue was $525,000.
 
Thanks to his crop insurance through Compeer Financial, the farmer received $155,000 in an indemnity payment to meet his revenue guarantee, allowing him to make a profit off the year.
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This is only one example of how crop insurance protects farm income year after year. Compeer Financial crop insurance officers put farm profitability in the center, before building your policy plan each year. Contact your local office to get your crop insurance ROI maximized this year.

Contact your Compeer Financial Crop Insurance Officer today!
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