Standard crop insurance provides a strong foundation for protecting crop revenue. But some producers may want more flexibility in managing their policies.
What are private crop insurance products?
Private products are crop insurance options designed to complement traditional coverage. Depending on the product and the operation, they may address a specific gap in coverage or add protection and pricing flexibility. The right fit depends on the operation’s financial goals, protection needs, and tolerance for risk.
Key takeaways
Private crop insurance products can complement traditional coverage by offering additional protection or pricing flexibility.
The right private product depends on the crop production, price, or margin risk a producer wants to manage.
An experienced insurance officer can help determine whether a private product fits the producer’s operation and financial goals.
Could this apply to your farm?
A private product may be worth discussing if you are:
Seeking additional revenue protection
Concerned about crop or input-price changes
Looking for more flexibility in establishing a guaranteed price
Managing tighter margins
Evaluating how much crop-production risk your farm can retain
Start with your risks, not the products
Before discussing private products, consider:
How much revenue do I need to protect?
What would a difficult production year mean for my farm?
How much risk can my business absorb?
Would more pricing flexibility support my goals?
A growing operation that recently added acres may have different priorities than a producer focused on preserving working capital. Understanding the farm’s financial position and crop-related risks comes before discussing solutions.
What can private products add?
Private products can complement traditional crop insurance by providing more flexibility around pricing or margin protection.
For example, some options give producers more opportunities to act on favorable futures prices or customize their price-discovery period. Depending on the option selected, that flexibility may expand opportunities to establish a higher potential margin guarantee or provide more flexibility in establishing a guaranteed price per bushel.
Whether that added flexibility fits the farm depends on its financial goals and how much risk the producer is comfortable retaining.
Why expertise and technology matter
Private crop insurance products can involve multiple options and considerations. An experienced insurance officer can help determine how those options align with the farm’s crop-related risks and financial goals.
Expertise
Explain available options
Evaluate tradeoffs
Apply coverage to the farm’s situation
Technology
Analyze relevant risks
Support informed decisions
Could private products add useful protection?
Every farm has a different financial position and tolerance for crop-production risk.
A conversation with your local office can help you:
Identify specific gaps in coverage for crop-related risks
Understand how private products may add protection or flexibility beyond traditional coverage
Compare available options and tradeoffs
Determine whether a private coverage option aligns with your goals
