A real client story about band coverage


Ida's Story


“I would have lost $1.4 million this year if it weren’t for my Band coverage.

A Summary of Ida's Year

Location:

Central Alberta

Year:

Calendar

2019

Struggles:

Difficult Harvest
Difficult Harvest
Frost
Frost
Snow
Snow

Product:

Band Coverage

AcresAcres Insured:

14,000

Total Gross Margin Coverage:

$100/acre

Actual Gross Margin:

$120/acre

ClaimClaim Paid Out:

$1,400,000 ($100/acre)

Ida and three generations of her family run the farm as a joint venture. They were looking specifically for an insurance product that would give them price protection and be stackable with their existing insurance. They knew exactly where the gaps in their coverage were and wanted to get those filled in with the right product at the right price.

They had looked into other band coverage, but what Global Ag Risk Solutions offered seemed like the best fit for them. Ida also liked the customer service that Global Ag Risk offered throughout the process and the simplicity of the reports.

Ida knew that the coverage would be right for their farm because it was based on their historic numbers, not just their location or an average that didn’t really apply to them.

Ida's Averages

Average Revenue

$400

Average Inputs

- $150

Average Gross Margin

$250

They decided on an amount of coverage higher than what their traditional crop insurance covered, with just a little overlap to cover exactly the risk they needed more protection on.

Ida's Coverage

Gross Margin Coverage

$100

Average Inputs

+ $150

Total Coverage/acre

$250

Total Coverage/acre

$250

Total Acres

x 14,000

Total Coverage

$3,500,000

Even though price protection was Ida’s number one goal with getting Global Ag Risk coverage, they ended up with so much more.

A few rounds of summer hail swept through that damaged a significant amount of crop, followed by a rare August frost that degraded even more of what they could get off the field. Both snow and rain during harvest meant getting that meager harvest off the field was a challenge in itself. Overall yield and grade were severely diminished in what they could recover, and they ended up in a claim.

Ida's Claim

Actual Revenue/acre

$300

Actual Inputs

- $180

Actual Gross Margin

$120

Total Gross Margin Coverage

$100

Actual Gross Margin

- $120

Payout/acre

$100

Payout/acre

$100

Total Acres

x 14,000

Total Payout

$1,400,000

Price, which they initially wanted coverage for, ended up being one of the few things Ida didn’t need protection for this year. But, with their Global Ag Risk policy, Ida and her family were saved from a whopping $1.4 million loss. Needless to say, they were incredibly happy with the level of coverage their policy gave them.

Protect your business.

See a real story
from one of our clients with band coverage.

Wheat Sprig

Our policies aren't one-size-fits-all, they're tailored to your farm.

Take that first step toward better insurance today. Get in touch with an advisor to see what we can do for you.