AUDIO: Doug Burns, Farm Credit Services of America
The United States is sitting on a large amount of corn and soybean stocks, and traders estimate ending stocks to increase by year-end. As the United States looks toward another year of tight crop margins, a credit adviser suggests “crop insurance is more important than ever.”
Doug Burns serves as vice president of related services for Farm Credit Services of America (FCS America). Burns says producers should not take risks with their crop insurance this year.
“Crop insurance is really more important than ever,” Burns said. “It may be tempting to reduce coverage to save money with inputs, but we recommend producers take full advantage of crop insurance because it’s the only input that guarantees revenue.”
Farm Credit Services of America finds customers purchasing crop insurance gain more confidence in marketing.
“Higher levels of coverage, like 80 and 85-percent, gives them more opportunity. They then take advantage of using their crop insurance and the opportunity to forward contract their crop when they get some opportunities in the market,” Burns said.
Burns admits – the crop insurance program is complex. However, he reassures producers by offering crop insurance strategies catered to an operations unique financial picture.
“Farm Credit Services of America’s insurance agents are highly trained and that’s all that they do. (They) work with crop insurance and our financial officers that know our producers’ credit situations,” Burns said. “We correlate the credit situation and crop insurance to have the producer make the best decision, meeting their needs in their operation.”