Quote:
Originally Posted by sns2
When a farmer is declared to have a total loss, like I'm thinking the gentlemen whose land I hunt on will have, what exactly are they insured for? Is the payout based on some type of average yield?
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It depends what he's insured for ? If you choose to buy the insurance and qualify your premium is dependent on how much an acre you insure. You can choose a break even $/ acre or pay a higher premium and have a +/acre. But it's farm average so if 1000 acres were a 100% right off and 2-1/4's (340acres) caught rain and went 30 bu/ acre. ( Canola) that comes off farm average. Plus if you had any carry over from last years crop comes off aswell . Like any insurance they do all they can to pull money in on premiums and fight like hell not to pay it back out on claims.