Crop Risk believes that the concept of risk management involves more than just insuring against the loss of production from weather related perils. Although managing those risks is a very important tool to protect capital invested in production costs, it is not adequate when considered as a total risk management package.

In the 20 years that the Crop Risk principles have been consulting, advising, and writing crop insurance for lenders and producers we have experienced many tragedies due to localized productions problems in a falling market. Now it is possible to avert many of these problems by consulting with experts that can assist you in controlling the risks in a commonsense plan that fits your needs for risk management.

Contrary to what many think, the worst case scenario is not the total loss of a crop. We have seen many cases of producers that barely raised their guarantees, had a premium to pay, and then sold their production at a price that was below cost of production. These budget scenarios happen all too often in modern day crop production and usually unnecessarily. With proper management techniques it is usually possible for producers to guarantee at least their crop production expenses, even in years when only a half of a crop is raised and the market drops to very low levels.

Designing such a plan takes management time and the use of various tools to book prices as much as six to eight months in advance of planting.

The following is a list of commonly available crop insurance tools that are available to all producers.