No one likes to deal with issues related to drought. But it's the card many Hoosiers have been dealt this year, and many are already taking it in stride as best they can. Seventy-five percent of Indiana corn actress and 65% of Indiana soybean acres are insured by some form of crop insurance. Corp insurance won't make you whole, but it should help you recoup enough to continue farming.
Your first move before you do anything in badly affected fields should be to contact your crop insurance agent, says Corrine Alexander, Purdue University Extension Ag Economist.
The next person who may be want to be good friends with this summer and fall is your elevator operator, especially if you forward contracted or have hedges or contracts in the future s market. In some cases, if you have forward contracts and can't deliver on them because you don't grow enough corn or beans, you may have to buy the contract back. Basically you're paying the difference between your contracted price and the actual price.
"There may be other options," Alexander says. "See if your elevator operator can offer you alternatives. In some cases, they could roll your contract not 2013 and have you fulfill the contract then.
"Remember that the reduction in grain volume is going to hurt elevators that make their money handling and merchandising grain too. They are going to find themselves in a very competitive market for corn. They don't want to lose you as a future customer. In most cases, elevator operators will likely do as much to accommodate you as they can."
The key is to determine where you are early and go talk to these people, adds Chris Hurt, Purdue Extension ag econ0omist. "If you've checked fields and added up possible bushels and you know you can't deliver on your contract, then go visit with y9ur elevator guys so you have as long as possible to work out decisions."