A real client story about AgWrap coverage


Martin's Story


“We’re not afraid to reach higher anymore.”

A Summary of Martin's Year

Location:

Central Alberta

Year:

Calendar

2019

Struggles:

Dry
Dry
Frost
Frost
Heat
Heat

Product:

AgWrap

AcresAcres Insured:

3,000

Total Gross Margin Coverage:

$200/acre

Actual Gross Margin:

$50/acre

ClaimClaim Paid Out:

$450,000 ($150/acre)

The Martin Family was coming off two bad years in a row and needed cost-conscious coverage, but also one that gave them the protection they want. They’re balancing preserving cash flow and capital as they buy the farm from Mom and Dad, but also wanting to take the calculated risks to grow for their kids. With the changes to AgriStability, stacking their coverage with a Global Ag Risk Solutions policy became an option.

They talked with their advisor and went over their numbers in detail. The Martin’s liked that they were talking about their own historic data from their farm, not aggregates or region averages. Everything they talked about what about their own farm and what would work best for what they needed.

Martin's Averages

Average Revenue

$400

Average Inputs

- $150

Average Gross Margin

$250

They decided on a combination of AgWrap from Global Ag Risk, AgriStability, and straight hail. With Global Ag Risk, they could increase their inputs as needed on the advice of their agronomist, which was really appealing. They always want to do everything theu can to get a great crop, but sometimes the cost was too much of a risk.

Martin's Coverage

Gross Margin Coverage

$200

Average Inputs

+ $150

Total Coverage/acre

$350

Total Coverage/acre

$350

Total Acres

x 3,000

Total Coverage

$1,050,000

A summer of extreme heat lead to a nasty drought that just wouldn’t let up. And, instead of some much-needed rain, hail tore through their fields reducing yield and grades on all their crops. On top of that, their canola got heat-blasted and hit with an early frost. It was a rough year.

Martin's Claim

Actual Revenue/acre

$250

Actual Inputs

- $200

Actual Gross Margin

$50

Total Gross Margin Coverage

$200

Actual Gross Margin

- $50

Payout/acre

$150

Payout/acre

$150

Total Acres

x 3,000

Total Payout

$450,000

With their Global Ag Risk Policy, they were able to maintain the cash flow they needed to pre-buy competitively, and they have the confidence to forward market more in the future. Now that they know how hard a Global Ag Risk policy works for them, they’re not afraid to get more aggressive in the way they farm and reach for more profits.

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