A real client story about fixed cost margin coverage


Katherine's Story


“I don’t know where we would even be this year without our Global Ag Risk coverage.”

A Summary of Katherine's Year

Location:

Southern Alberta

Year:

Calendar

2019

Struggles:

Dry
Dry
Low Markets
Low Markets
Tough Growing
Tough Growing

Product:

Fixed Cost Margin

AcresAcres Insured:

8,500

Total Gross Margin Coverage:

$180/acre

Actual Gross Margin:

$30/acre

ClaimClaim Paid Out:

$1,275,000 ($150/acre)

Katherine and her family know how to grow a good crop, but they wanted coverage that would protect them as they dug deeper into their family farm as a business. They want to grow their farm now and ensure it’s a profitable business when they pass it on to the next generation.

They were referred to Global Ag Risk Solutions by a friend and worked with the same advisor they had who helped them solidify their goals and outlined coverage options. They liked knowing that others trusted Global Ag Risk and also that the coverage would be tailored to their farm and historic averages.

Katherine's Averages

Average Revenue

$300

Average Inputs

- $100

Average Gross Margin

$200

Because they wanted to keep their hail insurance, Katherine and her family decided on both a Global Ag Risk fixed cost margin policy and traditional crop insurance from AFSC. So, their bottom end would be covered with AFSC and Global Ag Risk would cover the top.

Katherine's Coverage

Gross Margin Coverage

$180

Average Inputs

+ $100

Total Coverage/acre

$280

Total Coverage/acre

$280

Total Acres

x 8,500

Total Coverage

$2,380,000

Katherine wanted to be more profitable with forward marketing and 2018 wasn’t a great crop, so the family was concerned with the “what if” of a new season. Their Global Ag Risk policy helped them feel more confident and better equipped to take the advice their agronomist was giving them.

They were right to be worried about the “what if” because prices tanked and drought dried up their yield, so they ended up with less crop at low prices. It felt like just one of those years where no matter what they did, that crop just didn’t want to grow and the market wouldn’t cooperate.

Katherine's Claim

Actual Revenue/acre

$150

Actual Inputs

- $120

Actual Gross Margin

$30

Total Gross Margin Coverage

$180

Actual Gross Margin

- $30

Payout/acre

$150

Payout/acre

$150

Total Acres

x 8,500

Total Payout

$1,275,000

Their Global Ag Risk policy had their back and made sure they didn’t lose the farm because of one more bad year. Katherine is planning to be even more aggressive with forward marketing in 2020 and is building a strong business the next generation can rely on.

Protect your business.

See a real story
from one of our clients with fixed cost margin coverage.

Wheat Sprig

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

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