SHIPSHEWANA, Ind. — Before deciding on the type of crop insurance that’s best for one’s farm operation, a specialist said recently, producers need to first determine what they want the insurance to do for them.

“Do you want it to help keep your risk down or protect your big investment?” asked Sara Davis, a crop insurance specialist with Farm Credit Services (FCS) of Mid-America. “I’ve had some clients tell me they buy the insurance so they can sleep better at night.”

According to FCS, farmers have until tomorrow (March 15) to purchase or modify crop insurance policies for 2012. The deadline applies to most spring-planted field crops, including corn and soybeans.

Producers should also realize that all crop insurance – including price and products – is the same, regardless of which company offers it, Davis said. “What’s different is the service you get from a particular agent,” she added.

Seventeen carriers offer crop insurance and FCS uses three – NAU Country Insurance, Rural Community Insurance Services (RCIS) and ADM Crop Risk Services. Davis spoke Feb. 29 during the first day of the two-day Midwest Women in Agriculture conference in Shipshewana.

Farmers need to decide which plan of insurance they prefer and what coverage level they want. There are two county-based plans: the Group Risk Plan, which is bushel coverage, and the Group Risk Income Protection plan, which is revenue coverage.

There are also two individual coverage plans, which are a protection plan for bushel coverage (Yield Protection) and for revenue coverage (Revenue Protection). While record-keeping isn’t necessary under the county plan options, those plans also offer no individual protection, Davis noted.

“I’m not a fan of county plans,” she explained. “They’re like a lottery. You’re gambling the county will have a loss and you’ll get paid. Most of the producers I work with are under individual revenue coverage. It’s the most practical protection for bushel loss, price drop and market volatility.”

The benefits of individual-based coverage are that individuals are covered and the indemnity is based on the producer’s Actual Production History, she said. Accurate records are a must under individual coverage plans, she added.

County-based plans don’t include prevent or re-plant coverage unless a rider is purchased, but individual coverage plans include both, Davis stated.

The most common cause of crop loss in the United States is drought or heat, at 45 percent, she said. Second, at 27 percent, is excess moisture. Other leading causes are cold or frost, hail, disease and wind.

Risk is one of the factors to consider when deciding when to market a crop and for how much, stated Corinne Alexander, a Purdue University grain marketing extension specialist and associate professor of agricultural economics. Other factors include the outlook for futures and basis levels, the cost of production threshold and cash flow needs.

Alexander also spoke Feb. 29 at the conference. “If the market offers you really high prices, you can be aggressive,” she said. “But making these marketing decisions does become incredibly difficult because of the uncertainty in the market. How do you make marketing decisions based on such a wide range? We’re in a world where history means nothing.”

Purdue experts are projecting corn prices in the $4.60-$6.60 range for the 2012-13 crop years, while the USDA is predicting a $5 average price, Alexander said. “Global uncertainty could get you $4.60 corn. It’s a big range of prices for you to manage. The biggest concern is having the revenue to make debt payments and to live on.”

Producers should spread their pricing windows over periods covering pre-harvest, harvest and post-harvest, Alexander explained, adding cash prices tend to be the lowest around harvest time.