If you've been running the same crop insurance strategies for the last 10 to 15 years, it may be time to ask yourself: Has your farm changed more than your insurance coverage?
Most operations have evolved significantly over the last decade. Maybe you've added acres, adjusted your crop mix, upgraded equipment, or adopted new seed genetics. Today's hybrids can produce bigger yields, but they also bring different risk considerations. Yet many producers continue to renew the same insurance approach year after year without taking a fresh look at whether it still aligns with their operation.
According to Grant Dixon, regional vice president of insurance at Frontier Farm Credit, that's where many producers can unintentionally leave themselves exposed. Grant brings a unique perspective to the conversation as a farmer, former financial officer and crop insurance leader. Having worked with both financially strong operations and producers facing financial stress, he's seen firsthand what happens when risk management and business goals fall out of alignment.
Grant recalled a couple producers specifically who had been in a longstanding relationship with a different agency. After an insurance review, the producers realized they had been leaving thousands of dollars on the table.
“That was the quantifying difference when they said you know what, if our agent isn’t talking to us about these options, and we’ve missed out on this money, now this is a business decision,” he said. “We’re leaving money on the table and we need to have an agent that’s better educated, that understands the changes, and how to position them to be successful moving forward.”
As you prepare for 2027, here are five questions to help determine whether your crop insurance decisions are driven by business needs or simply habit.
1. Has your insurance strategy evolved alongside your farm?
Every operation is different, which means there is no one-size-fits-all insurance solution.
What made sense for your operation 10 years ago may not make sense today. Your financial position, debt structure, acreage footprint, marketing strategy, and risk tolerance may all look different than they did when you first selected your current coverage.
The reality is that crop insurance has become increasingly complex. With more than 2,000 potential combinations of products and endorsements available, finding the right strategy requires more than simply renewing last year's policy.
That's why expertise matters. Many producers have a longstanding relationship with their insurance agent, and those relationships are valuable. But crop insurance decisions should be guided by what's best for the business, not simply by familiarity.
Ask yourself: Has your crop insurance agent helped you evolve your strategy or just renew your policy?
2. Are you getting the most out of area coverage options?
Many producers are familiar with their base Multi-Peril Crop Insurance (MPCI) policy but may not fully understand how supplemental coverage can fit into their broader risk management strategy.
Let’s say you’re facing a year of tight margins. Your MPCI policy can provide coverage up to 85%, but significant gaps can still exist depending on your operation's financial situation. Area-based products, such as Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO), can extend coverage levels up to 95% in certain situations.
That doesn't mean every producer should automatically add these products. But it is important to understand how they work—and whether they fit your operation.
Grant recalls working with producers who had never been shown the full value of area plans.
"When we quantified what they were leaving on the table when it came to area plans, it was enough that they would have been able to put a down payment on two irrigated quarters that they wanted to buy."
The takeaway isn't that area plans are right for everyone—it’s that you can't afford to make decisions without understanding your options.
3. Do your insurance agent and lending officer work together?
Risk management doesn't exist in a vacuum.
A crop insurance strategy that works for a well-capitalized operation may not be right for a younger or highly leveraged operation. Understanding the financial side of your business is just as important as understanding insurance products.
Grant saw this regularly during his time as a financial officer.
"One of the most common themes that I found with producers that were struggling financially was that their risk management did not align to their financial situation."
At Frontier Farm Credit, insurance officers and lending officers work together to help evaluate an operation's unique situation. That collaboration helps identify potential gaps, understand financial exposure, and develop a strategy that supports both profitability and long-term stability.
For some producers, that may mean strengthening coverage. For others, it could mean determining they can comfortably take on more risk. Either way, the decision is based on data and business objectives rather than assumptions.
4. Are you focused on profitability or just premium?
It's easy to look at premium cost and assume lower is better.
But the lowest premium doesn't always lead to the best financial result.
As a farmer himself, Grant approaches crop insurance the same way he approaches any other business investment.
"I don't farm just to sit in a tractor. I run it as a business,” he said. “Running a farm operation as a business and making sure that you've covered the risk that you're tolerant to is just prudent."
The question isn’t just, "How much does this coverage cost?" Instead, ask, “Does my coverage allow me to make a profit and take advantage when the market allows?”
The answer depends on a variety of factors, including debt levels, family living expenses, cash flow needs, and long-term business goals.
5. Are you making decisions with data or relying on assumptions?
The crop insurance landscape continues to evolve, with new products, endorsements, technology, and analytical tools helping producers make more informed decisions.
Many producers still rely on what they've always done or on generalized recommendations rather than evaluating how different strategies would have performed on their own operation.
That's where data-driven analysis becomes valuable.
Frontier Farm Credit combines crop insurance expertise, technology, and operational insights to help producers understand how various strategies align with their operation and financial goals.
Instead of guessing, you can see the numbers and make decisions with confidence.
Make it a business decision
Relationships matter in agriculture. Agriculture is built on them. We are a farmer-owned co-op built on relationships.
But when it comes to protecting your operation, crop insurance decisions should ultimately be business decisions.
Grant has seen producers face that reality firsthand.
“We run into this a lot in insurance, where there’s a relationship side of this,” he said. “You know, ‘I’ve been with my guy forever’ or ‘he’s my college roommate’ or ‘he’s the guy downtown.’ But it came down to being a business decision—that if they did not make this move, they were ultimately headed down a road where financially they didn’t know if they would be successful moving forward.
“Once they made it a business decision and not an emotional decision, that was the key to their change.”
As you think about your crop insurance strategy for 2027, take a step back and ask whether your current approach is truly aligned with your operation today. The answer could have a bigger impact on your profitability, growth opportunities, and long-term success than you realize.
Schedule an insurance review today to see if your crop insurance strategy aligns with your operation.
