By Jonathan LaPorte
As a decision-maker on a farm, you will need to manage many risks. Price and production risks are some of the most challenging risks to manage. Factors can include market prices, feed costs or operating costs involved in raising livestock. Insurance for beef producers was created as a cost-effective means to aid farmers in managing or reducing the impact of these risks.
Coverage options are based on different types of income-based losses. Producers have the option to focus on price, gross margin or revenue, depending on the policy. Each policy has its own set of criteria for eligibility and potential payouts.
Bulletin E-3509: Insurance Options for Beef Growers from Michigan State University Extension reviews the basics of livestock insurance options and presents how their use can benefit your farm. This includes understanding the differences between policies, the ways each provides protection, and the advantages offered by each. The bulletin also reviews how USDA’s Risk Management Agency provides beginning farmers with additional benefits to assist in managing risks.
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Source : msu.edu