October 28, 2021
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 $
value amount of the grains that are stored in the bins must be specified. When determining this, you
need to take into account the amount 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’m 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?
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.
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.