“I don’t know where we would even be this year without our Global Ag Risk coverage.”
A summary of Katherine's year
Location:
Year:
2019
Struggles:
Dry
Low Markets
Tough Growing
Product:
Fixed Cost Margin
Acres Insured:
8,500
Total Gross Margin Coverage:
$180/acre
Actual Gross Margin:
$30/acre
Claim 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.
