Even if in the dust. It's a challenging game. Eric Edgington of the Federal Crop Insurance Corporation in Washington, D.C., said many farmers such as cotton growers look at the expense of the insurance premiums relative to commodity prices in any given season. In 1997, Edgington said cotton growers had 37,000 crop insurance policies. He realizes that with low commodity prices, farmers are caught in a squeeze.
Lenders enter the picture Lenders also are key part of the game.
Some farmers must have crop insurance to satisfy their bankers or other lenders for an operating loan. USDA research has shown that crop insurance, used with a sound marketing program, is a more successful strategy than using either alone. That is why Schumacher and leaders in the crop insurance industry make a point of including grain elevator operators, commodity brokers and ag lenders in the mix of people necessary for a fully integrated risk management strategy. Schumacher said farmers can no longer expect the federal government to react to crop disasters, whether they are widespread or on only one farm. That emphasizes the importance of crop insurance.