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Managing risk in a tighter ag economy

A senior vice president of insurance says farms will have to adjust their risk management options in this lower-price environment. 

Tony Jesina with Farm Credit Services of America says the market trends have not been friendly to the farmer when looking at commodity prices. He tells Brownfield with declining commodity prices, base-level coverage isn’t going to be enough. “Across our footprint, I looked at a lot of different counties, and if you look at the most common policy that producers are purchasing, it will not cover their break evens in 2025,” he says.

He says farmers should consider some additional resources. “Since the last time we were in this environment, if you go back ten years ago, the risk management agencies added over 300 different types of plans and options that didn’t exist back then,” he says.   “Things like enhanced coverage options, supplemental coverage, option margin protection.”

Jesina says farmers should meet with a crop insurance specialist to discuss their best options for the coming year.

AUDIO: Tony Jesina, Farm Credit Services of America