Crop Insurance Is Not A Good Place To “Save Money”

As farmers put pen to paper, preparing for the 2025 season, they’re going to look at cutting some costs.  Doug Yoder with Country Financial said it’s important to resist the temptation to cut back on crop insurance.

“In this negative net farm income environment that we're in, where inputs are still high, but the prices have plummeted quite a bit, there's no denying in my mind that farmers got to push the pencil pretty hard this winter and cut costs any way they can," Yoder said.  "I always tell them this, in this environment, I hope they don't voluntarily reduce the main coverage. Crop insurance, bar none, is their main safety net. I just hate to see them voluntarily reduce their coverage. I think they’ll need all the coverage they can get in this sort of environment.”

He stressed it’s important to cut costs where you can.

“There's no doubt it's one of the things they're going to have to have to evaluate," Yoder added.  "When you look at inputs such as seed, fertilizer, chemicals, and cash rent, this is a very cash-heavy endeavor that they're in. And when the net farm incomes are projected to take a hit this year and be negative, then that's that environment I was talking about, where they're going to have to push and do all they can to be profitable next year. Also, unfortunately, we do not have a new farm bill yet, and the old farm bill that we're still in because they've extended it twice now, doesn't appear that any of those commodity programs in title one of the farm bill will be providing any extra support this year. It didn't last year either, and it doesn't appear they will this year either.”

Yoder added there are some important deadlines to remember.  And it’s a good idea to chat with your crop insurance specialist to make sure you are aware of all dates, as well as all paperwork requirements. 

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com