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Crop Insurance and Grain Marketing By Nathan Nordstrom, Director of Grain Merchandising

Chances are you recently signed up for federal multi-peril crop insurance, but you may not be considering the price protection you are receiving through that policy. Crop insurance can serve as an important cornerstone in any marketing plan. It’s one of the lowest-cost ways to add price protection early in the season. Crop insurance also includes the potential for upside if prices improve by harvest. This is why it is often compared to a futures option. However, insurance will also protect against yield loss, and an option will not.

At the same time, it is also important to note some of the shortcomings of crop insurance as price protection: • Higher-than-average yields will reduce the price guarantee. • February and October averages do not take advantage of summer weather markets. • Protection offered by crop insurance expires once the crop is harvested.

A diversified marketing plan with UFC can help overcome some of these shortfalls without the expense of additional insurance. We can review historical data to formulate realistic target prices and come up with a Plan B if markets remain flat. To discuss this further, call the UFC Grain Division at 507-647-6601. ●

HEY NUTRIENTS. WE’RE COMING TO GET YOU. Introducing Levesol, the only pure chelating agent that can be added to liquid fertilizer for in-furrow application. It’s a groundbreaking development that keeps nutrients from becoming bound in the soil to make them more available for your growers’ crops. Help your growers unlock nutrients to maximize nutrient efficiency with Levesol.

22 ©2015 West Central. Levesol is a trademark of West Central Distribution, LLC.

2017 UFC Fieldviews - Issue 09 Spring  

Fieldviews is a publication of United Farmers Cooperative located in Southern Minnesota.

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