Technology that reduces crop insurance premiums

Friday, April 3, 2009

American farmers in 11 states are getting reduced crop insurance premiums by planting triple-stack technology corn hybrids. Can Ontario farmers be far behind?

Mike Nailor, trait marketing manager for Monsanto, says that he's had "informal" talks with Agricorp, which handles crop insurance in Ontario. Nailor says test plots show that triple-stack hybrids – those with a gene to fight corn rootworm – have a yield advantage over the same genetics with just Roundup Ready and corn borer protection. Theadvantage is 2.9 bushels per acre on rotated ground and slightly shy of 10 bushels per acre on corn-after-corn trials.

Agricorp is aware of developments in the United States. "We're always looking over the fence," says Mike Vlcek, director of program development for Agricorp. In the United States, he adds, private companies deliver crop insurance under rules and premiums set by government.

Ontario's crop insurance provider has been involved in marketing schemes with technology providers before, he says. In the 1990s, Novartis gave farmers a rebate if they grew certified seed and the money came through crop insurance. "The competition just started to give a cash rebate," Vlcek says.

In another instance, Dupont "did a deal" guaranteeing farmers their input costs if their crop yield didn't meet their crop insurance guarantee.

Vlcek says that the general strategy has been to build discounts into the program for strategies that reduce risk but aren't proprietary. "If Yield Gard has an advantage, it would be built into the coverage," he says. BF