Crops are a big Minnesota commodity, contributing $18.4 billion to the state economy, while producers received $230.4 million in insurance payments in 2020 to cover their crop losses. With that much money on the table, taking a thoughtful, analytic approach can make a big difference in the financial health of your operation.
Crop insurance: Is it time for a change?
The biggest mistake you can make with your crop insurance is going with the same policy you used last year. Sticking to the familiar is easy. When the same policy works out for years, it’s easy to settle into an “If it ain’t broke, don’t fix it” mindset.
Except, the market changes from year to year, which means your risk factor is always a moving target. That’s especially true in the 2022 growing season, with record-high input prices. If you don’t adjust, your guarantees may not suffice to cover your losses.
Now that it’s winter, it’s an optimal time to sit down with your crop insurance spreadsheets to prepare for your meeting with your insurance agent. The deadline to complete election and enrollment is March 15, 2022. Sleep well at night knowing you have insurance in place to protect your finances and keep your farm operational season after season.
What kind of insurance do you need?
Multiple peril crop insurance (MPCI):
- Covers losses for 120 types of crops, caused by acts of Mother Nature, including drought, winds, fire and insects.
- These are backed by the federal government but sold and administered by private companies.
- The deadline to sign up is March 15, 2022, and before any crops are in the ground.
Does crop insurance cover hail damage?
Despite the devastation hail can wreak upon crops, it’s not covered by the Federal Crop Insurance Program. If you’re on the fence, it’s worth considering because Minnesota came in fourth in hail loss claims in the years 2017-2019, according to statistics compiled by iii. The Gopher State also had a 126% crop-hail ratio in 2019, according to Statista.
Crop-hail insurance can be purchased anytime during the growing season, so if you want to wait, that’s an option.
Why your choice of insurance agent matters
When it’s time to finalize your crop insurance coverage for the 2022 growing season, your best bet is an independent agent based in your community. When you work with a trusted choice independent insurance agent at Minnwest Bank, you’ll get the expert guidance you need to get the best protection against crop loss.
We listen
Our insurance agents start by assessing your operation and your goals, so we can match the best federal and market insurance products to your operation.
We’re independent agents with farming experience
When we recommend crop insurance coverage, we have the freedom to shop around for the best rates and the best products — which gets passed on to you. We can tailor a plan that meets your needs and goals.
Many of our agents have firsthand experience with farming. Their real-world producer experience gives them a deep understanding of the risks that accompany each growing season.
We’re here to help
Our industry expertise combined with our agribusiness experience makes us well qualified to meet your needs. We take a multipronged approach to protect your business against loss.
We share the same hometown pride
Our agents live and work in your region. So from day one, our intimate knowledge of the local agri-economy will be an asset to you. Compared to that distant voice on the phone, we’re better equipped to recommend the crop insurance products that make sense for your operation — and your neck of the woods.
Schedule a one-on-one consultation with a Minnwest Trusted Choice Independent Insurance agent. We’ll help you assess your current coverage for your crops, land, buildings and machinery so you can get the best coverage in place.
