“We’re not afraid to reach higher anymore.”
A Summary of Martin's Year
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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.
Average Gross Margin
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 they can to get a great crop, but sometimes the cost was too much of a risk.
Gross Margin Coverage
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.
Actual Gross Margin
Total Gross Margin Coverage
Actual Gross Margin
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.