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Risk management considerations for summer 2024

First on the Farm Newsletter

Risk management considerations for summer 2024

Grant Olson
Ag Banking Team Lead

This article was written on June 15. For up-to-date information regarding recent flooding, please contact your banker.

Although spring rains created planting delays and even prevent plant decisions in some areas, they were welcomed by most.

At this time last year, all of eastern South Dakota and parts of western South Dakota were categorized by U.S. Drought Monitor as being “abnormally dry” to “extreme drought.”

Fast forward to today and the only areas showing signs of drought are the very northwest and southwest corners of the state.

Couple this with planting progress for corn and soybeans in line with five-year averages and pasture conditions rated at 73% good/excellent in the June 10 Crop Progress & Conditions report, and I’d say from a “local” perspective that we’re off to a pretty good start.

That being said, the question farmers need to be asking themselves is, “Am I adequately protected?”

Current risk management considerations

With multi-peril crop insurance (MPCI) decisions behind us, it’s now time to look at ways to protect the top end of our actual production history. There are many add-on hail and wind policies that can accomplish this at reasonable per-acre costs.

For cattle producers, it’s great to see early pasture condition ratings at five-year highs, on top of record-high cash live and feeder cattle prices!

It has been widely reported that cattle inventories are at historic lows, thus driving prices for all classes of cattle higher. While high prices don’t necessarily mean high margins, it does tend to create high price volatility.

One way to manage price risk on your cattle operation is by utilizing Livestock Risk Protection (LRP).

There are a wide range of LRP products that can be used to price protect everything from unborn calves to 1,600-pound steers and heifers.

LRP has become a very popular risk management tool not only for cattle producers but also for hog producers.

We partner in developing and implementing risk management plans utilizing LRP policies for our farrow-to-finish and wean-to-finish hog producers, and we understand hog production and the challenges that come with managing large inventories on tight margins.

Whether you’re a cow-calf producer, a cattle feeder, or you’re in hog production, our team’s experience in LRP covers all areas of livestock price risk protection.

Custom-tailored solutions

As we enter this growing season, it is likely that we will experience weather events and volatile livestock markets. In both cases, there are insurance products that can be tailored specifically to your operation.

Feel free to contact me at any time with questions or to learn more about products available to you! You can give me a call on my cell phone at (605) 940-6517.


Important dates

July 1, 2024 – 2025 LRP Crop Year begins.

July 15, 2024 – Acreage Reporting deadline.

Have questions? We're here to help.

Grant Olson

Ag Banking Team Lead

Phil DeGroot

Ag Banking Team Lead

Brian Gilbert

Ag Banking Manager

Josh Kayser

Ag Banking Team Lead
Insuring Your Success: Risk management considerations for summer 2024

This article was written on June 15. For up-to-date information regarding recent flooding, please contact your banker.

Owners of ag retailer Lakeco Crop Services recount 2019 flooding, banking partnership

The year was 2019, and flooding was rampant across southeastern South Dakota.

Tea With Teammates

Want to know our teammates’ deepest, darkest secrets? Well, we can’t share those; they’d probably report us to HR for telling you.

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