Essential Guide for Farmers: Navigating Crop Insurance with PRM
For a successful operation, January and the winter months aren’t useless time; it’s a strategic phase for laying the groundwork for the year. Here at Precision Risk Management (PRM), we’re committed to guiding producers through this crucial period with specific, actionable advice. Let’s explore four essential areas to get your crop insurance and risk management out to a great start in 2023:
1. Reassess Your Coverage in Light of Last Year’s Performance
Begin by evaluating the last few years of crop performance and weather challenges. Did excessive rainfall affect your yields? Or perhaps drought was a significant concern. PRM can assist in recommending and adjusting your policy to better match these experiences. For instance, if hail was an issue, consider specific CropHail PLUS. This can be a game-changer in covering the gap left by a traditional MPCI policy.
2. Stay Ahead of Market Trends and Price Changes
With the ag constantly changing nature, it’s vital to stay on top of market trends. For example, if you are expecting commodity prices to rise, you might want to explore Revenue Protection policies that safeguard against both yield and price risks. You may want to protect as much of your upper-tier revenue with Enhanced Coverage Option (ECO). Up to 95% of your county revenue is guaranteed with the addition of ECO on top of your MPCI policy. PRM provides up-to-date market analysis and pairs it with your risk tolerance to help you make informed decisions. This foresight can be beneficial in making informed decisions about your coverage levels and ensuring that your policy reflects the value of your crop accurately.
3. Streamline Compliance: Key Deadlines and Documentation
January is the time to get your paperwork in order. Missing a deadline can be costly. Ensure you’re aware of critical dates like sales closing deadlines, which vary by crop and region. PRM offers a comprehensive Compliance Checklist, helping you track important dates, like the final planting and acreage reporting deadlines. We can also assist in preparing and organizing essential required documents using precision technology, such as production records, to maintain compliance and streamline claim processes.
4. Plan for Long-term Success: Reevaluate Your Risk Management Strategy
The beginning of the year is an ideal time for a broader reevaluation of your overall risk management strategy. Consider factors beyond immediate concerns: Are there long-term shifts in climate patterns affecting your region? How might changes in local regulations impact your operation? How is global agriculture changing and affecting trade? PRM advises looking at the big picture and planning for resilience. This might involve exploring policies that offer protection against a wider range of risks or adjusting your farming practices to adapt to long-term environmental changes. PRM’s expertise extends to advising on these broader strategies, ensuring that your farm is not only protected for the upcoming season but is also prepared for future challenges and opportunities. By adopting a forward-thinking approach to risk management, you can create a foundation for sustainable success
