It's not that way anymore. But they see organic as a form of risk management because they lower expenses by not using fertilizers or chemicals. The Jacobsons are required by their lender to have crop insurance. They would anyway, as they've collected from it in each of the previous six years because of wet conditions. But they don't carry hail insurance because the farm has suffered major hail losses only once in the 91 years it has been in the family.
Contracts are another way of reducing risk.
The Jacobsons also have 63 acres of durum under contract, meaning they have 40 percent of their planted acreage committed. They would put 80 percent under contract if they could, but only with the more secure companies. That's because they've lost money with failed organic companies before. Futures and options contracts aren't available to organic farmers. Unless they're done right, it's just another form of gambling.