During planting season we deal with a lot more assets. You're conscious of the value of that seed as it goes into the planter. You are communicating it clearly to employees on the farm that you do not want to waste it.
Have you thought about insuring that asset and others during the peak seasons?
In the spring you have seed, chemicals and fertilizer. Maybe you buy all your inputs and store them for a few months until planting. All of those inputs are included in your farm blanket insurance policy. Keep that in mind when determining the value of your blanket policy to avoid underinsuring, which could lead to a co-insurance penalty if you have a claim.
In the fall we may have more grain stored on the farm. In the spring, we have seed and chemicals and fertilizer. You need to think about insuring those assets while they're in your possession. Insurers allow you to adjust your blanket coverage for these peak seasons instead of just having higher insurance year round. That gives you a premium break but still provides the coverage you need.
When managed best, it's something you think about when you're updating your insurance. You plan when you'll have more assets on the farm and plan the insurance coverage accordingly, much like the way you might manage cash flow on your farm.
We've seen some severe weather already this season. Our agents are out there and know of farmers, hit by the early season tornadoes, whose policies were not up to date.
There are enough challenges in agriculture with market volatility, the prices of inputs and the uncertainty of weather on your crops. Let's be smart about protecting the value of our assets with the right insurance. If your agent isn't talking to you about these kinds of issues, it might be time to find an agent who has the business savvy to partner with you to face the challenges ahead.
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