Doug's Story

It’s not just crop insurance; It’s retirement planning insurance.

Late in his farming career, a $212,500 payout saw Doug through, allowing him to retire on his own terms – and on his own schedule.

Saskatchewan, Canada | 2019




Low Yield

Low Markets

Planning for the future of his farm in 2019, Doug figured he was only a few years away from being ready to retire.

As Doug planned and met with his bankers and other advisors, it became clear that with just a handful of seasons left, a single bad growing season could put his timeline at risk and really affect his retirement years.

“If I hadn’t bought [full coverage], I would have been forced to retire quicker because the bank would’ve stopped backing me.”

Wanting to manage his risk in order to ensure a comfortable retirement on his own terms, Doug found that traditional crop insurance plans just didn’t offer the full farm coverage he was looking for.  He needed a solution that would cover more than just the cost of his crop, and that would recognize the track record he’d built over a long career in farming.

When he met with his advisor to review the Full-Coverage Production Cost Insurance solution from Global Ag Risk Solutions, Doug found the right fit for his farm and his personal financial goals.

Unlike legacy crop insurance, this policy wasn’t about just taking the sting out of a terrible year or preventing a total loss – because the Production Cost Insurance full-coverage policy covers Doug’s input costs and his gross margin, it was about being able to stick to his plans – even if the weather, pests, or disease had other ideas.  Strong coverage, bottom-line protection, and a partner he could trust were well worth a few dollars an acre in additional premiums over his other options.

Doug’s coverage options were based on the real performance of his farm.

Doug sat down with his advisor at his own home to review his coverage options. They reviewed the different coverage options, and walked through what he could expect from the Global Ag Risk team, including what the claims process would look like if Doug had a tough season.

The coverage options his advisor gave him were based on his farm’s historical performance. Over the years Doug had averaged a $200/acre gross margin.

Doug's historical averages:

Average Revenue


Average inputs:


Average Gross Margin:


The simplicity and predictability of full-coverage protected against the risks that mattered most.

The coverage options his advisor gave him were based on his farm’s historical performance.  Over the years Doug had averaged a $200/acre gross margin. Doug liked that the full-coverage option went beyond protecting his direct input costs, insuring his farm’s gross margin.  When his advisor finished comparing all his options – including a traditional crop insurance product Doug had used in the past – it was clear that an additional investment in premiums was going to buy a lot of protection and peace of mind.

Doug qualified for a range of coverage levels, but ultimately decided that full-coverage Production Cost Insurance with a gross-margin coverage level of $150/acre offered him the best value.

Doug's Full Coverage Plan

Gross margin coverage:


Average inputs:


Total coverage/acre:




Total acres:


Total coverage/acre:

x $300

Total coverage:


Covers the cost of your three major inputs:




Plus a gross margin you choose on top of those costs. If your input costs go up, so does your coverage, but never your premiums.




As it turns out, the next growing season was a bust.

It was one of the driest years Doug had seen in his farming career and his yields were off – way off – his goals. On top of it all, a down market hurt the value of the crop he was able to get off. It was the worst case scenario Doug had been worried about when he geared up for seeding.

Doug’s gross margin that year was just $65/acre, a fraction of the number he had in mind at the start of the season. With some of the other insurance options he’d considered, his retirement plans might have had to wait – he might not have even triggered a claim.

With his full-coverage policy from Global Ag Risk Solutions, Doug was guaranteed the $150 gross margin he’d selected at the beginning of the season. Not only was he in a claim, but his policy put another $85/acre in his jeans and kept his long-term plan on track. Doug was able to keep farming hard without dipping into his savings, and he is heading into next year more confident in his future than ever.

Doug's Claim:

Average revenue/acre:


Average inputs:


Actual gross margin:




Total gross margin coverage:


Actual gross margin:






Total acres:




Total claim paid out:


Join the Risk Management Revolution. Talk to a Global Ag Risk Solutions Advisor Today.

Production Cost Insurance

Covers your input costs and a gross margin you select over and above those costs.

Learn More

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