But he is rightfully proud of his ability to keep production costs down. But even with these efficiencies in place, Laprairie finds the going tough enough to encourage his son to pursue an engineering career rather than staying on the farm. MPCI is the basic crop insurance policy that insures yield losses. To totally cover all input costs, I would need the 75 percent coverage, but the premium for that coverage is considerably higher. Ted Couvillion, loan officer, for the Marksville, Louisiana, Production Credit Association, has seen more farmers picking up crop insurance this year with the reduced rates.
Coverage provides an extra measure of protection that can keep a farmer from going under.
In this section of Louisiana, farmers who lease land usually pay landlords on a 'share-rent' basis. They give landlords a percentage of the gross profit for use of the land. When the farmers have such a lease agreement, their insurance only allows coverage on the percentage of the crop that belongs to the farmer, in effect lowering the actual coverage for the farmer. Because of their increased crop insurance coverage, Laprairie believes that nearby farmers will find it easier to get operating loans. You need crop insurance for operating loan collateral like you need comprehensive insurance when you buy a new car.