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Production Cost Insurance - Guaranteed Income??

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  • Production Cost Insurance - Guaranteed Income??

    I just met with a guy about Production Cost Insurance and I am pumped!!!

    I actually heard about this at a meeting and posted something a while back, but after meeting with him this has me excited...hard to do with corn and soybean prices in the dumper


    The guy explained it to me that the crop insurance guarantee will guarantee me a certain amount of money per acre plus 100% of my seed costs and fertilizer and chemical costs as well.

    My crops are not the best, because of poor soil and probably a bit with my management, but when I was trying to push the pencil on my operation I was having a hard time just covering my basic costs. I was starting to think about cutting fertilizer - I KNOW ITS WRONG...but I am looking for ways to cut corners - maybe with this insurance if it works I don't have to?????????

    If I spend $100 on Seed, $125 on Fert and $75 on Chemical Plus if I do any fungicide or any other treatments, I am pushing 300-325ish an acre. With the basis in my area if things remain the same, I am guessing I would be lucky with $3.00 corn? Maybe 3.25? That's not much to cover all my other costs. My crop insurance now uses CBOT and does not account for basis so I am not getting a true offer.

    Has anyone else used it? Cant find too much online other than at Diversified Crop or at

  • #2
    This is the first I've heard about this. How does the price compare to regular insurance?


    • #3
      I dont have a quote yet. It's based on each individual farm. I think it will cost more, agent said about like optional units. But I pay in every year to the federal and it does nothing for me. At least with this, I can PUSH the agronomy hard and grow my guarantee. If it works, great I make more money...if it fails miserably like most things on my farm (ha) I get paid.
      Don't get me wrong, I am not about collecting insurance if I can make money, but I need protection to do what it is supposed to.


      • #4
        I see you r location is Kansas - I heard there are several agents that are pretty good with this product, but I dont know exactly where. I have to call this guy and find out if you want? He said there is a guy in Kansas that because of this, he got really aggressive in hedging and made over $100,000 more this year due to PCI. Waiting on the details of that evidently this covers hedging somehow.


        • #5
          I just would use caution. A few years ago our crop ins. agent had some kind of insurance that paid if rainfall was below average during the growing season or something to that effect.. Can't remember the details now but a few guys bought it and it paid decent that first year. So the next year quite a few of us bought it and it was just a waste of money. Even the agent was disgusted and that was the end of that. Not saying this product you're looking at isn't any good, but if it sounds too good to be true, it probably is. Remember insurance companies aren't out there because they want to help you out. They're there to make money. Keep us posted when you find out more details.


          • #6
            WILL DO! I think I know what rain program you are talking about. It deals with rain stations so it could be a drought at your place but the rain station gets plenty of rain and you get nothing...

            I got a number to an agent near Dodge City (I think Offerle?Spelling?) that has used it for a number of years. I am going to call her. Dodge City is a ways away from South Dakota, but at least I will know more how it works from an actual agent!!!