A private insurance product offered through Silveus Insurance Group, allows producers of corn, soybeans, wheat or cotton the opportunity to lock in higher prices for next year’s crop as late as harvest time this year. A new video featuring Scott Silveus, president and CEO, highlights the advantages of Price Flex in helping farmers manage price-risk challenges.
“We’ve all seen these years where we buy crop insurance in February and then we get a little weather scare,” Silveus explains. “Don’t you wish your insurance would grab that higher price, lock onto it, so you don’t have to sell all of your crop if you don’t want to? That puts you in the driver’s seat. You don’t have to sell your crop if you think it’s going higher. You can wait, and your insurance is backing you up, locked in at that higher price.”
Silveus developed Price Flex to fill this very real need. A complement to traditional Revenue Protection or Areas Risk Protection crop insurance, it can be purchased 18 months before harvest with no out-of-pocket cost until next harvest. Farmers buy one or more alternative price discovery periods (intervals of 15 or 30-days throughout the year) and the highest is used to establish the revenue guarantee for loss purposes. For example, Silveus says if you want to insure the average for November and the average for December, along with next July and early June, you set the combination up that you want for your farm. Then you receive the highest price of those cycles.
“So, Price Flex gives the farmer the best chance possible of capturing the market high for plant price,” he says, “And there’s virtually no limit on the number of periods you can buy. Price Flex can be purchased today to take advantage of a higher revenue guarantee in the event of a Spring or Summer rally. Whether you’re pulling plants or in the combine, it’s never too early to lock in your price for the next crop year.”
Price Flex has been approved by the State Department of Insurance in many states, although not all crops or counties will be eligible in every state. Please consult with your agent at Silveus Insurance Group regarding the availability of this product for your particular crop and county combination.