Hindsight is 20/20.  And some years it's just painful.  Such is the case this year for one of our customers who opted for a lower coverage level on his wheat crop.  This Illinois farmer raises about 500 acres of wheat and this was the first year he was buying crop insurance on wheat.  Crop Insurance Specialist Dale Peters evaluated the operation, and recommended 75% Crop Revenue Coverage.  That was going to be $38/acre in premium.  Too expensive.  The farmer opted for a lower coverage level (50% CRC) at a $5/acre premium.

Come harvest, the yields were coming in lower than this farmer's 73 bushel guarantee.  So he called Dale to check on his crop insurance.  Because of the 50% coverage level, the news was not good news.  No claim.  But let's look at what it could have been.  The guarantee was locked in at $8.58/bushel.  The harvest price hit $5.19/bushel (Chicago).

75% of the 73 bushel APH = 54.75 bushels/acre x $8.58 = $469.75.  That's the guarantee.  Actual yield:  60 bushels/acre x $5.19 = $311.40   

$469.75 (Guarantee) - $311.40 (Actual) = $158.35/acre claim.  Subtract the premium out -- and this farmer would have been ahead by $120.35/acre during this past cropping season.

Dale Peters says the situation changes from year to year.  The important thing is to sit down with an experienced Crop Insurance Specialist each year to figure out the best strategy.

Marketing sometimes becomes an after thought when the checking account empties out and the bills come in.  We use grain sales to raise some cash, missing out on better prices.  Chip Nellinger talks with KRVN's Ken Rahjes about being strategic to get better prices and cash when you need it.

Aug 25 2009 Marketing for Cash Flow Needs - Nellinger.mp3 (3.18 mb)

Thanks to our customer Scott Krusemark for inviting us to be a part of Thunder By The River in Wisner, Nebraska this past weekend.  We had a great time!  We had the chance to talk with a lot of you from our primo spot in the VIP tent.

The roast beef sandwiches were a hit with the crowd here in cattle country.  And Saturday was a perfect day out!

Sam, Jason & Sarah trackside

Now is no time to put your head in the sand if you haven't been pricing any grain this growing season.  What are the right steps to handle the situation now, and take control of your marketing strategy?  Market Advisor Chip Nellinger talks with KRVN's Ken Rahjes about this.

Aug 18 2009 What To Do Now - Nellinger.mp3 (2.57 mb)

Crop Ins Newsletter September 2009.pdf (1.68 mb)

We're going to be out and about a lot in the next few months.  If we're not stopping at your farm, think about looking us up at some of the events we're attending.  Find us in the VIP Tent at Thunder By The River in Wisner, Nebraska August 21st & 22nd. 

Then we'll be at the Farm Progress Show in Decatur, Illinois September 1st, 2nd & 3rd.  You can find us in the Varied Industries Tent.       

Or we'll also be at Husker Harvest Days, in Grand Island, Nebraska, September 15th, 16th & 17th in Grand Island, Nebraska.  Find us in the Diversified Industries Tent.  

How'd you like to inherit the farm, only to end up having to sell 55% of it in order to pay the taxes due just nine months after the passing of your loved one?  It could happen if your parents' operation was worth more than a million dollars and they die in 2011 or beyond.  High taxes are the biggest consequence when farmers don't plan for the transition of their estate, according to CEO Darren Frye.  Listen to more of his interview with KRVN's Ken Rahjes.

Aug 11 2009 Estate Planning - Frye.mp3 (3.37 mb)

Today we heard from Bryan Dodge, a very energetic speaker who shares our agricultural background.  A lot of what he talked about is good for Water Street Solutions employees personally and professionally and for our customers.  Goal setting was a big part of the discussion.  Bryan says you should:

• Write your goals down
• Laminate them
• Share them
• Carry them with you

We've been assigned to write our goals and send them to him.  An important part of considering new goals is also defining what we're going to stop doing.  That's the tough part, I think!  What are you going to stop doing to make time for what's important?

The staff of Water Street Solutions is training this week and weekend.  Training and bonding.  I personally feel very fortunate working for a company that invests in my training the way this company does.  Take a look at the size of this group!  Our staff has grown substantially over the past three years, while retaining a very family feel.

Some of the technologies of precision agriculture have been around for a while.  Are they fun toys for innovators, or really a way to find more profit?  CEO Darren Frye talks with KRVN's Ken Rahjes about some of the considerations for making money and not just making maps.

Aug 4 2009 Finding the Profit in Precision Ag - Frye.mp3 (2.28 mb)