With the October 1 deadline for insuring fall-planted crops fast approaching, farmers are faced with some major questions, not the least of which is “can I afford not to purchase crop insurance?” Oklahoma Farm Bureau’s crop insurance manager advises the risk is too high to go without protection.
“We’re in such a risky area of the country, in terms of producing crops, it’s definitely beneficial for farmers to have crop insurance,” said Scott Bulling. “Over the last 15 years, for every 42 cents farmers paid for crop insurance they received $1.25. This shows crop insurance is a good investment and a good risk protection tool.”
Oklahoma farmers have taken notice. Bulling estimates that approximately 70 percent of the eligible crop acres are covered by some form of crop insurance.
Bulling says higher commodity prices this fall are forcing farmers to closely exam the amount they pay on crop insurance products such as Revenue Assurance, which is based on revenue, instead of production.
“This may be the year to go ahead and lock in a price (using the futures market), guarantee yourself an income, rather than just using a multi-peril policy which only guarantees yield,” Bulling said.
Another concern for farmers this fall is the proposed cut in federal support dollars for the crop insurance program in the 2007 farm bill. The House-passed version reduces support by $1 billion.
“This is an important part of the safety net for farmers and anything that reduces support levels could be a problem,” Bulling said.
The crop insurance manager said if a billion dollars is cut out of the program, he fears there will be fewer companies offering crop insurance, less service, and overall more challenges for farmers.
The Oct. 1 deadline for purchasing crop insurance applies to wheat, rye, oats and barley.
