Saturday, February 07, 2009

Crop Insurance

I feel uncomfortable talking about the crop insurance programs which cover revenue, but this caught my eye:
An attractive feature of CRC insurance this year is that the price used to establish the estimated revenue guarantee for wheat in 2009 is $8.77 per bushel. Wheat futures for spring wheat are currently trading in the $6 to $6.50 per bushel range for September. That means that CRC is providing an opportunity to insure the price, one component of expected revenue, well above what the futures market believes the price will be at harvest time. If you have not purchased a CRC policy already, visit with your local insurance agent before March 15.
Sounds like a no-brainer, but there must be a catch (like maybe the futures markets are wrong, as if that ever happens).

No comments: