I came to Global Ag Risk Solutions, partly because of my background with Agri-Trend. I knew farmers did better, because of the high level of agronomy, provided by the Agri-Coaches….gaining yield and quality on one side…and saving money on the other side….always keeping budget and ROI in mind.
I used to say, we could help farmers “grow more bushels”, but that’s not exactly correct. A wheat crop has its highest potential…right before that seed hits the furrow….arguably, up to 250 bu/ac or more. After that, management practices and Mother Nature go to work, eroding that yield potential. It starts in the soil, then the seed, then the soil fertility, then plant fertility, then the weeds and insects, then the many diseases, both in the ground and in the plant. Then there’s early frost, too much moisture, not enough moisture, hail, heat, cold, aster yellows from the south, smoke from the north, late frost….all the perils Mother Nature provides.
In the end, the farmer ends up with 70, 60, 50bu…or worse…from that 250bu potential. So really, what a good agronomist does…is try to protect that yield potential, all through the season….not grow more bushels. And, we love the customers that are not okay…with just okay.
So after three months with Global Ag Risk Solutions, the number one thing I’ve learned is, there is a proven benefit to higher level agronomy…and Global Ag Risk Solutions rewards farmers that use good agronomic (and marketing) practices. Global Ag Risk Solutions’ base product covers a) a farmer’s input costs (seed, fertilizer and chemical), dollar for dollar, plus b) his fixed costs at a level the farmer chooses. That rolls off the tongue pretty easy, but the key is….the more money the farmer puts into his inputs…the better his coverage gets…without raising his premium. The fact remains, that good agronomy decisions often cost money, as they require additional inputs, and must be applied at strategic times, throughout the whole season… early in the season due to application limitations, at the right stage of the weeds, and before the onset of disease…because once you see it…it’s too late.
Global Ag Risk Solutions has built up thousands of years of data, from thousands of farms, proving on average, for every dollar a farmer spends on inputs, he gets a ROI on those dollars of $1.74. Even in the bad years, the additional inputs are breaking even. That is good, solid data…proving my theory from above….working with a good agronomist pays dividends. So we know, the more money the farmer puts into inputs, the less chance of him having a claim….and that’s good for him and good for Global Ag Risk Solutions.
So my job now is, to convince farmers to go out and farm…to the best of their ability…making good, agronomic and marketing decisions all the way through the season. And if, after all that, Mother Nature kicks them where it hurts….Global Ag Risk Solutions will be there to catch them, pick them up, dust them off, and help them go into next year, with the confidence of knowing, everything’s going to be okay.