By WMBD-TV
PEORIA – As the deadline for federal crop insurance approaches, a local farm certified financial advisor is stressing the importance of proper crop insurance during severe weather season.
David Vaughn, an advisor at Country Financial, said the three most destructive storms last year happened in Illinois, and many farmers were underinsured.
“They may not have enough coverage to have to rebuild or reconstruct their sheds or whatever is damaged. So that means more money out of their pocket to get their building back to whole,” he said.
Right now, farmers are getting ready for planting season.
“The biggest question is when to start planting, that’s always the billion dollar question. You have to do it when conditions are right, but an early spring may also mean a late frost. If they plant too soon, and a late frost comes in, that could damage their crop for the entire year,” Vaughn said.
Vaughn said drastic temperature fluctuations and unpredictable weather can have a devastating impact on crops if planted too soon, so it’s important to be properly insured.
“There’s floods, there’s droughts, there’s so many factors the weather plays into the day to day of lives of the crop and success of the crop,” he said “It’s very important because that is their ‘cash crop’. So if they lost their income, not too many people can work an entire with no income. So crop insurance can protect their income,” he said.
Inflation has also wrecked havoc on the cost of structures and the rebuild of structures, and Vaughn said they are finding people are underinsured, which can lead to disaster.
“I would say that’s probably the easiest way to combat the higher premiums, is to go with a higher deductible. That way you’re not cutting costs or any potential decline in coverage. You’re just willing to assume more risk,” he said.
The federal crop insurance deadline is March 15.
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