A question we hear frequently is, "I have my grain bins & grain complex insured on my farm policy. Isn't
the corn and soybeans stored in them covered automatically?"
Unfortunately, No, they aren't automatically covered under a farm owner policy.
If you have grain bins, we can assume you will eventually put something in those bins. However, the dollar
value amount of the grains that are stored in the bins must be specified. When determining this, you
need to take into account the number of bushels stored as well as the current or contracted price the
grain is selling for.
If you have 100,000 bushels of soybeans @$12/bushel, therefore, you have $1.2 million of assets in
storage. You think to yourself… I'll just call my agent when I'm done harvesting, what's going to
happen??? Now imagine you have a violent thunderstorm or tornado that blows in and collapses the
bins or blows over some of your bins, damaging 50,000 bushels of soybeans. You are now out
$600,000 because it's not insured. Don't you wish you had taken the time to call or email your agent
prior to the loss?
Long Term Grain Storage
You may find yourself in a position where you have an excess of grains and you need to store it into the
following year. If this is the case, you need to keep these items in mind.
- Commodity prices can change significantly over the winter once corn & soybean harvest is
complete. Make sure you are following the Chicago Board of Trade and current commodity
pricing offered by your local grain elevator. The $ limit of insurance for grain in structures can
be updated at any time during the policy period as market conditions change.
- National supply and demand for grain can literally change at the drop of a hat. Make sure
you are following trends and pricing up tics while looking for opportunities to sell your stored
- As your stored grain is sold and hauled to the grain elevator, contact your agent to decrease
the limit of insurance. We can increase or decrease the grain in structures coverage at any
time during your policy term.
Even if you are taking the necessary precautions and proactive steps to protect your crop, mother
nature can some times still come into play. We all pray for rain during the growing season and then
hope for dryer conditions to harvest the crop. This is the same no matter the type of farming
operation. Keep in mind, Crop Insurance is designed to insure the growing crop, but the minute the
grain is harvested and stored in the grain bins, it must be added to the farm insurance policy.
You spend your life dedicated to your farm. Make sure you are properly insured. Reach out to Ryan Wiles today to learn more.