00:00 Is crop insurance part of your crop marketing plan? Or are you looking at crop insurance just as catastrophic coverage? 00:06 You might change your mindset after listening to this episode of extreme Ag Cutting the curve. Welcome 00:12 To extreme Ag Cutting the Curve podcast, where real farmers share real insights and real results to help you improve your farming operation. 00:22 This episode is brought to you by Simon Innovation, protect your crops and maximize yield with a full lineup 00:28 of innovative precision tools engineered to enhance the efficiency and accuracy of your sprayer. Visit simon innovations.com 00:35 and start getting more ROI out of your sprayer. And now here's your host, Damien Mason. Hey there. Welcome to another fantastic episode 00:43 of Extreme Ice Cutting on the Curve. Got a great one for you today. Something that every single person who's involved in the 00:48 business of agriculture, every single person that works in production agriculture should listen to and understand and probably should listen 00:53 to it a second time 'cause it's a little bit complex, but it can save you or make you a lot of money. Kelly Garrett, one of the founders 00:59 of Extreme Ag is joining us. He has had a discussion with some of the extreme ag guys about federal crop insurance 01:07 and how he has reshaped his mind and to get around how to better use these crop insurance programs to give yourself a backstop 01:15 that then keeps you solvent, keeps you above water on your fields, you know what your cost of production is. 01:22 If you don't, you should. And now let's figure out how you can make sure you cover that. Jared Creed with JC Ag Financial Services is essentially a 01:29 CFO financial advisor and insurance consultant to Garrett Landing Cattle. So, Jared, start us off here. 01:37 This is not uncommon that farmers are really good at producing bushels, but they get a little bit into the muddied waters of 01:45 what crop insurance is and what it does, and they just view it as, okay, it's just like collision insurance on my car, but it's not. 01:52 So you held Kelly change his whole mindset on this whole thing. So kind of take us through that, uh, that 01:58 that pathway, if you will. Absolutely. Thank you for the invitation naming. And Kelly, let's just start 02:05 with maybe setting a little bit of groundwork here. Production agriculture, when we go buy fertilizer, we buy seed or we buy a tractor 02:13 or plant their combine, you name it. All of those purchases, we know what the end result is supposed to be. 02:21 We know what we are achieving with the purchase that we make. Oftentimes what happens in the crop insurance world is the 02:31 purchase is made, maybe not reviewed to the extent that it should be when it's purchased. And then most misfortune it is put on a shelf 02:41 and forgotten about and only revisited if and when it actually is needed in the most worst times. 02:51 So I would like to shift this conversation a little bit away from not viewing crop insurance as a disaster program, 03:00 but rather turning it into an actual marketing tool. And a little bit of background on that. The RMA Risk Management agency, obviously part of the USDA, 03:12 they probably get plenty of a bad rap from the average US producer. Nobody likes to talk about any type of insurance 03:20 as he alluded to Damien. However, in the last five, six years, the RMA continues to evolve the product offerings to fit 03:31 what I feel is the needed programs that all US producers need in today's volatile markets, high cost of production, basically 03:43 a subsidized program that will allow the producer to not only eliminate the possibility of going backwards, but it's a business we need to keep it moving forward. 03:57 So, you know, when you think about a 30,000 foot view on crop insurance, and you think about the environment we are 04:04 in today going into 2025 versus the last several years, I think it's probably, uh, too often thought that our risk today is not what it once was. 04:18 And I would vehemently disagree that the risk on a table today moving forward is, do I save a buck based upon my crop insurance elections 04:28 or do I look at my balance sheet five, 10 years down the road and think if I would've just spent the money 04:37 to put myself in a position to succeed, no matter what happens. So which one's more important? 04:43 Everybody's on a different, uh, span of their farming career, but which is more important in the environment we're in 04:50 right now, taking a massive financial step backwards, which I think is happening to a incredible amount of US producers 04:59 or just finding a way to move forward, you know, to, to kind of open this up into a deeper conversation. 05:06 I always care about the mentality of I don't care where the money comes from. I don't, I don't care if it comes from physical grain. 05:17 The lack of physical grain, hedging decisions, marketing decisions, crop insurance, uh, FSA programs such as our county 05:26 or PLC, it does not matter At the end of the day, the business needs to generate more revenue than the expenses that's going out the door. 05:36 And backing up to the comment again about why these crop insurance products have turned into a marketing tool, 05:44 the volatility we've experienced in the last several years have created numerous situations that the producer is able 05:52 to, uh, almost extract a greater investment from that insurance marketing tool than not almost extract do get the opportunities 06:08 to extract rather than just purchasing it and sitting on the shelf. And that's, again, that's kind of the bare root, uh, 06:14 bare bones of what this conversation needs to be about. Don't buy your insurance and just forget about it. You have to be able to extract the value out 06:23 of it when the market moves in a way that is providing you an opportunity to generate more revenue than where you started before. 06:32 Kelly, this is a different timeframe. Just last year, 23, uh, we're gonna be down 25% on revenue from there. 06:40 I think it is. Uh, we're off 40% projected on farm revenue from where we're just in 2022. 06:46 You and I and Jared are recording this in, uh, fall 2024. Um, to say it matters more now than it did a couple years 06:54 ago, seems like an understatement. So you've gotta change your entire view of the money side of your farming operation, I think in two years. 07:03 Um, this has happened before, but it's happening pretty precipitously now. Talk me through the mindset change. 07:10 Mindset change. Well, number one, crop insurance is not insurance as part of your marketing program. 07:16 And what I, the way that I described it, what Jared does for us is that marketing is a three-legged stool. 07:23 You have the physical grain, you have the cash sales, be it hedging or, or cash grain sales to the elevator, 07:30 the ethanol plant, whatever. And then you have the insurance policy. And as Jared says, we don't care where the money comes from. 07:38 And I would tell you that I believe the money will come from probably two of the legs every year. 07:43 And the third leg will be a bit down this year. The cash sales will be down. We're gonna lean on the big yield we're about to have, 07:52 and we're gonna lean on the revenue check we're gonna get from the margin insurance. 07:56 Last year, the yield was down. You know, this year I probably raised 235 bushel corn. Last year I only raised 187. 08:03 So last year the yield wasn't impressive, but the $6 corn was impressive. And the co the insurance check was impressive 08:10 because of the loss of loss, lack of yield and loss of re This year we're not gonna lean on the cash sales as much, so we don't care where the money comes from. 08:19 But the money's always gonna come from two legs of that stool. But you gotta have all three legs or you're gonna tip over 08:25 Jared, don't, don't we think, I mean, uh, you got into the crop insurance side, you fused some of your synergies. 08:32 You, uh, recorded an episode of the Business of Agriculture with me once, and we called you the farm. 08:37 We asked the question, does your farm need a independent CFO Chief Financial Officer? 08:41 And the answer is yes. So that's more been your role as the chief financial officer for hire, if you will, financial consultant for a farming operation, which 08:50 of course means to run it like a business, look at like a business, look at the revenue, the expenses, et cetera. 08:55 But there was this disconnect between the insurance and the money side of it. And I don't know why 09:02 that still persists based on talking to you. I don't fully understand all the, the, the ins and outs of it, but because I don't farm, 09:09 but I can tell you that it looks to me like it's a fusion that it's foolish to let dangle 09:15 Yeah, I don't want to double down on an earlier comment. But you don't buy a piece of equipment 09:20 and just not use the most value you can get out of it. So it's not an easy concept, but it is actually just an algebra equation. 09:34 And I think every single producer, especially in your stream ag network, uh, has a mojo about 'em 09:41 that they can do some pretty simple math. It starts with a revenue guarantee, right? It all starts with a revenue guarantee 09:48 at that point in time. It is A plus B equals C, you know what the revenue guarantee is? 09:55 You can make any yield assumption. It's gonna tell you the price requirement or guess what? Chicago Board of Trade. 10:01 There is a price every single day that you can use that price to figure out what the yield requirement is. And there are points in time 10:11 with the volatility we've had in the coverage. Individuals can elect that the yield requirement based upon larger price moves, 10:21 again, the yield requirement to reach the original revenue guarantee becomes a number that is physically impossible to do, 10:32 physically impossible to accomplish What you just said there. You're saying if I, if I didn't use the, the tools available 10:41 to me through crop insurance for me to get to my cost of production, that part's physically impossible. Yeah. Yes and no there, 10:50 but more so just thinking about the actual tool I'm purchasing. So let's just use this as an example where Kelly Farms 10:58 and operates in Crawford County, Iowa. And again, we're recording this here first week of September. 11:05 If you look at the insurance program that we are using as a marketing tool, currently the county he operates in has 11:14 to yield almost 270 bushel acre to not be indemnified. And I'm not chasing this indemnity game. All right, we'll, we're, we'll patch this in on the 11:26 marketing side momentarily. The record yield for the county is 2 36 Crawford County, especially with Kelly's, uh, 11:37 farming skills or maybe lack thereof. Just a joke. Just a joke, are never going to raise 270 bushel an acre. 11:46 So I am now able to start considering my marketing plan around a probability, understanding that I have an insurance program 11:57 that is deep in the money going to indemnify me if price stays where it's at, into the October averaging period. 12:06 And I think understand that, Get the indemnification, which is a, another bump on money. 12:11 Jared. What that means is if Kelly doesn't, and you say he'll never grow 276 bushel corn, that's not true. 12:17 He has, and he might. But the point is, on an average across every acre, 5,000, uh, corn acres, that's a hell of a number to pull off. 12:25 Especially when, right now we think it's gonna be, you're gonna be probably at two 20. So he's 50 bushels out of 12:32 what it would take to not get that. So, And I'm gonna, I want to just make one comment there, Damon. 12:38 We're talking about the county, not da, not Kelly's farm, okay? The entire county, his county raises 230, 12:47 240,000 acres of corn every year. And the record is 2 36 mm-Hmm. Right now, the county has to yield 270. 12:58 That itself is basically saying you have insurance on your arm and it is cut off. Are you gonna leverage your insurance 13:07 to put your arm back on or are you just gonna let it hang? Okay. So that's the one. Okay. 13:14 I think we should probably explain insurance in general because there's a person that says, okay, I've got my car's insured for $40,000 13:21 and I have a deductible. This is a different thing. They do rates of insurance, meaning you can go 95, 88, 90, 85, et cetera. 13:30 But the indemnity part of this, I'm not sure that most people get to pay up to get that. Correct. 13:39 Uh, okay, let's just run through a real example here, Damien. Perfect. How about that? 13:45 And, you know, we're going to, we're gonna go through hard cold numbers here. So we'll do it slow. 13:50 Maybe that means your listeners, uh, can grab their calculator on their phone and do this with us. 13:58 And again, it's just math. So we're gonna use Kelly Garrett's home county, Crawford County. They have an expected yield from the government 14:10 of 2 25 0.1. That number in itself is basically the A PH for the county. The insurance programs that producers have, uh, the ability 14:22 to elect, elect can go all the way up to 95% coverage. In addition, a lot of these area based programs will allow us to elect the price a good six months prior 14:38 to the February insurance average. So now we're gonna do some simple math. We have a 2 25 0.1 expected yield. Yep. 14:48 And I'm gonna multiply that times 95% coverage, okay? And right there, that's the first cold hard number. That's two 13.8 come hell 14:59 or high water, the county has to yield two 13.8. The insurance price established August 15th to September 15th for margin of protection, 15:12 which we're discussing was $5 and 9 cents. I take those values, multiply times each other. And I'm at $1,088 an acre. 15:22 So five, $5 and 9 cents. 5 0 9. Yep. And you took that times to two 13.8. Yep. Correct. So we're at 1,088 bucks. 15:32 That means that at this time that we're recording this last year, and the producer is actually purchasing inputs 15:41 for the following crop year, might still have been focused on marketing their old crop, maybe not looking as far out as they need 15:49 to on the next year's crop. But I'm spending money to grow a crop next year already. Why would I not go ahead 15:57 and lock in an insurance program to start covering my butt from the first second that money gets spent? 16:06 All right, so now let's just take this a step forward. I said it's a simple algebra equation. 1,088 revenue guaranteed in the eyes 16:15 of government margin protection. If input costs for the farmer go up, it eats into the margin. 16:23 If input costs go down, it enhances their margin. Yep. And that impacts how the coverage operates. To keep it very, very simple for this conversation, 16:34 the input costs went down $15 an acre. And that happened from last fall to this April when they recalculate the input costs. 16:45 Okay? I'm taking that 15 off of the thousand 88. Okay? Now we are, we're down to the, we're down to very simple math. 16:57 10 73, I'm guaranteed 1,073. And at all times, I can divide that number by any price lower than the 5 0 9. 17:09 And that's gonna tell me exactly what the county yield has to be. Or I could take that number and divide it by a county yield. 17:20 And that's gonna tell me what the price would have to at least be at to not be indemnified. Okay? So 1,073, as we're recording this. 17:32 December, corn is at $4 and 5 cents mm-Hmm, 4 0 5. That means his county has to yield 265 bushel on acre as of today. 17:44 Yep. I said two 70 earlier. A five bushel high. 2 65 30 bushel above a record. Yep. Now, I wanna think about this one other way. 17:57 I'm gonna go back to 1,073 and I'm gonna divide that 1,073 that I'm guaranteed by a record yield of 2 36. 18:10 At that point, I'm coming up with $4 and 55 cents a bush. This is where the rubber meets the road. 18:18 I can make an assumption a little bit more of an educated guess on what the actual yield potential is in a county, 18:29 and I can make a better guess there than what I'll ever be able to guess what the market's going to do. 18:34 Okay? But I said $4 and 55 cents, and we're at 4 0 5 today. That means that every 236 18:46 bushel times Kelly's acres is short corn at $4 and 55 cents every single one of 'em. And oh, by the way, 18:59 it's actually at 120%. So now I'm talking about 66, 60 7 cents a bushel. I created a hedge. I'm not saying I the farmer Yep. 19:11 Created a hedge via margin protection on 120% of their acres over 50 cents ago, even using a record county yield. 19:22 Yep. So where is the, At the moment? Because we're at step one. Okay. By the way, when are you going for the people 19:31 that are not listening, that are viewing, by the way, and you might want to view this, if you're listening to this, dear listener, you, 19:36 you're gonna wanna view this episode on the video because Jared's gonna do a walkthrough and an actual, uh, uh, graphics. 19:44 You can see these numbers. All right? Uh, Kelly, this is, this has got some complexity to it. How long did it take for you to go through this 19:52 before you were like, oh, okay, I got it now. It took a couple sessions with Jared. 'cause there's some math and it's a different idea. 19:58 It's a different insurance policy than what I was ever used to. You know, I was a little nervous about depending upon the 20:05 county yield instead of my yield, things like that. Uh, you know, so we, we look at hail insurance and wind insurance to make sure that we're kind 20:13 of still not self-insured, but we're still a little independent on what happens in the county. 20:17 That was my immediate concern. But then after being involved in this, uh, there's no other way to set your marketing floor as high 20:26 as we set it without this policy at, at the end of the day, that that's all there is. 20:30 How do I set that marketing floor as high as possible? And this is it. Incidentally, this is different from hail and wind. 20:40 It is, this is, this is revenue. This is a revenue. This is Revenue. This is a revenue. 20:45 This Is, this isn't, this isn't buying a put or shorting the board. 'cause that only gives you price. 20:50 This isn't looking at yield at all. This is revenue. And this is what's important. Price times yield is revenue. We are insuring revenue. 21:01 And no other way can you insure as high as you can than you can with this policy. And it's a federal policy. 21:07 And Jared, that's the thing, is that when these numbers are what they are, whether you're talking about the dollars for a piece of, 21:12 you know, a new C-N-A-C-N-C-N-A spray sprayer from our, uh, uh, our friends at John Deere 21:18 or these crop inputs, if we can't guarantee revenue, we could very quickly become insolvent or bankrupt. Yep. But not to, uh, rain on your guys' parade. 21:30 That was only step one. It's like the old infomercial, but then there's more. Okay. Okay. So we're talking about an RMA product here, 21:41 and we know what our barriers are right there, right now, and we can start to consider that 21:48 as being a financial shorten the market, a financial hedge in the market. I don't care what words you want to put to it, 21:56 the individual is hedged approximately 50 cents a bushel higher than where the market says today. 22:04 Now, let's sit that to the side just for a sec. By The way, real quick, real quick, real quick. For the person that's caught up on the grain marketing side 22:10 of this, and that's something you're much more, uh, fluent at than many people. I didn't have to go on Chicago Board of Trade 22:15 and sell four on 55 cent corn. This was done through an insurance policy. That's the interesting part. But I didn't have 22:23 to time the market or be lucky that I figured out a way to sell 22,000, 2024 corn a year and a half in advance. This is not done through, uh, CME. 22:34 That is correct. Damon, I've known you for a long, long time, and I think you're gonna get a chuckle at this. This is where people's opinions of 22:44 how this product really works starts to go down multiple roads. And we're not looking at it as an insurance product. 22:53 When I talk to Kelly, I talk about our hedge from margin protection. I talk about our hedge. 23:00 I don't care if it is a hedge on bushels, if it's a hedge on price, if it's a hedge on revenue, yeah, it's an insurance product. 23:08 I get it. But we're looking at it as one bucket of revenue. So let's, let's get this next step in the, in the, uh, 23:16 window here for a clear vision. Let's say Kelly thinks he's gonna grow 220, 230 bushel corn on his own. 23:24 Farm marketing and crop insurance still have to go hand in hand. My multi peril crop insurance that I still have to carry 23:34 in addition to margin protection and ECO and SCO, what have you, it still guarantees me bushels. And those guaranteed bushels push come to, 23:46 you know, push, come to shove. You want a high enough price that you can market those to cover all your costs. 23:53 The last couple years, that's been pretty difficult. So I still have to do something with those guaranteed bushels. 24:01 So let's just say an individual's 50% sold, I marketed ahead 50% of my production many moons ago, hopefully a dollar ago in the market. 24:14 I know I'm 50% sold on my physical crop, but low and behold, I have this 120% short over here from my margin protection. 24:25 Those don't mesh. They stack on top of each other. Insurance doesn't care what you have sold. Your grain marketing plan doesn't care about your insurance. 24:37 But you have to understand the financial ramifications of tying the two of 'em together. So if I have 50% of my crops sold, 24:46 and my margin protections providing me 120% hedge, what percent sold am I today? Hundred 70. I add 'em together. 24:57 So let's just pretend that this is the first time the market came down the four bucks, which it's not. 25:03 No, we've been below four no for the last couple months, right? Okay. We're at four bucks and we're 170% sold. 25:11 We're going into pollination. Isn't being that short the same type of speculation as trying to be long? 25:22 We talk about being Texas hedged long. Try to avoid that situation. Yeah. Why do I want to be that short either? 25:30 And I take that a step further of understanding Damon, this is where it's going to really get, uh, mind war for individuals. 25:38 The risk for Kelly's operation is not that the market goes down. The risk in his operation is 25:45 that the market goes up present day. Got it. Have to be very careful who you tell that to, right? For some financial situations, 25:54 we just want the market to go lower. Yeah. It's a better reward to us. Okay? However, let's put that all in context here. 26:02 If I know I'm 170% short, my revenue is going up. As the market goes down, I'm collecting more than what I'm giving up. 26:13 I might only have 50% of my crops sold, but insurance is recouping everything else that I'm giving up. 26:22 And then, and some, so let's just do simple math behind that. I've got 200 bushel corn. The market drops a dime. 26:29 If I'm 0% sold, my revenue per acre should drop 20 bucks an acre bucks. Okay? If I'm a hundred percent sold, market drops a dime, 26:39 my revenue stays steady. If I'm 170% sold and the market drops a dime, but my revenue goes up 14 bucks an acre instead 26:51 of going down 20, that's my 170%. So every dime that the market's gone down, for lack of a better words, a competitor may be losing 27:03 that revenue opportunity on the way down. But it's adding on our side. So to tie this together, 27:10 we talk all the time about obviously know your costs market accordingly. When the profitable opportunities come around, these type 27:19 of situations can actually, uh, create an environment where to lock in the same amount of, um, 27:29 or lock in an increased amount of profitability, you actually have to be a buyer of corn or a buyer of soybeans, not a seller. 27:40 I just said that my risk is that the market goes up not down. So I'm gonna bring it all the way back one more time. 27:48 I've got an RMA program subsidized 95% coverage. I can understand the math behind if price is this yield has to be that, or if yield is this, price has to be that. 28:00 Got it. I can make educated decisions on that. I can still control my own marketing plan accordingly. But I'm measuring what my true financial risk is 28:12 daily based upon what happens if the market does X, Y, Z. That right there in itself, those couple steps is 28:22 what makes it not easy. But that is exactly why as the owner of JCI financial services, we are using insurance 28:32 as a marketing tool for years and years and years. It's not a common knowledge in the industry. Damien, it is not a common knowledge 28:43 for 9.9 outta 10 crop insurance agents in the countryside as well, because everybody's focused on their own silo. 28:51 You might have a brokerage firm that's focused on price outlook. Yep. You might have a crop insurance guy that's out there to 28:59 focus on selling what the farmer's willing to buy. And then you got the farmer that's wearing a dozen plus different hats Mm-Hmm. 29:07 And nobody's bringing 'em together. Mm-Hmm. It's not a pitch for our company. It's the synergy of what all this can create. 29:15 And yeah. So the thing, the thing is, is there's a lot of complexity to this. The math part's fine. It's just that there's the program. 29:21 I think that it isn't that the deal, Kelly, the math part of it, fine, 29:26 but there's complexity on the fusion of all the programs. Well, yes, there, there is. 29:32 But once you understand it, and I understand the first time you're hearing it or the listener hearing it, it seems very complex. 29:38 You sit down with Jared or you sit down with Jeff, or you sit down with Craig and Mike and you hear about it after you understand the synergies as he says, 29:47 you will think, how did they ever do it? Not together. Mm-Hmm. Very few marketing people understand insurance. 29:54 Very few insurance people, if any, understand marketing. And once you understand my legged stool analogy, 30:00 you will be like, how did I ever do it differently? That's what we're, you know, like Jared talks about now we get a hundred, when you get 30:07 below 4 54, like this year, you get below 4 54. I was a hundred, I would be more than 170% short because we were, we were sold more than this at one point. 30:17 I was over 200% short. We got down to where we thought it was the bottom. So we were Texas Hedge, 30:23 we were probably speculating a little bit, honestly for a while. As it came lower, we lifted the hedges 30:28 because the risk is the market going higher. And, and then you want to get, you want to get down there where you have a mathematical stranglehold on the Chicago 30:37 Board of Trade, and you have the revenue locked in. And we don't care what direction it goes. That's when you sleep easy in a $4 corn market. 30:44 And that's where I'm at today because of Jared. All right. So you, you got everything sold. So the point is, there's the person right now, no, 30:51 Damien, I don't have anything sold unless you want count. The insurance has a hedge, which you should. 30:56 We had, we had it all sold. We got below 4 54. The, the, the margin protection, the policy took control. And then when we thought we got to the bottom area, 31:06 which we think we're at, we've lifted the sales and we allowed the policy to be sold. Because now if it goes up, we're making money on the grain. 31:16 If it goes down, we're making money on the policy. We've taken the marketing out of the equation so it doesn't get in the way. 31:22 And you're sitting there, and by the way, are you fixed? Are you, are you, are you, are you, 31:25 is your number known at this point? The yield? No, it's Not. No. Not the yield is the, um, is the amount 31:31 of revenue you're gonna make known. Well, we're predicting about coming Into a range In a range In a range. 31:39 I would tell you it's probably, it's between 1200, 12 50 an acre. Yeah. Which, which put you a hundred, 31:46 which would you a hundred dollars over cost of production. Kelly obviously said ahead of this, that, uh, 31:50 we could use his numbers. So if you consider having 400,000 bushel of physical corn sales, 31:59 but in his hedge account today, the net delta is long, 387,000 bushel. A physically sold 400, the hedge account is long, 387. 32:12 The guy would say, well, I don't have anything sold. You're correct. Except my margin protection. Has we completely covered? Yeah. 32:21 It kind of goes back to the point again, if I'm gonna buy a product, I want to maximize the efficiency of the product. 32:30 And if I'm buying a subsidized product, I definitely wanna maximize its efficiency. Mm-Hmm. So if I don't have downside risk on physical grain, 32:43 why am I short physical grain? Why do I have it sold? Yeah. I don't want it to be because insurance is either in the 32:52 money or it's outta the money. Black and white markets go up, enough yield goes up enough and it takes it outta the question. 33:00 Guess what, we're right back on the other side of this conversation. Turning the responsibility of locking in now another 33:08 increase of revenue on our own marketing the crop as if we don't have the insurance. And there's these ebbs and flows. 33:16 And I just want to throw out this concept real quick. The exact same math we just walked through for, uh, Crawford County. 33:24 You know, we're in the insurance cycle right now for next year's corn crop. We and, and soybean crop. 33:30 And we don't know what prices are going to do, but I can do some simple math. Again, 2 25 0.1 expected yield. 33:39 I'm gonna multiply that times 95%. The insurance price this year is gonna be, give or take, $4 and 40 cents. 33:47 That's $940. I'm gonna divide that by a record yield to 236. And I come up with 3 99 corn. Okay? 33:57 Nobody in their right mind in today's environment would be willing to bet the farm that corn can't go below $4 next fall. 34:08 And so imagine a situation that corn does drop another 10, 15% in the next three months. 34:16 I'm not suggesting it's gonna happen, quite frankly, I don't think it's gonna happen. But I'm not willing, willing to bet the wellbeing 34:25 both mentally and financially for these operations that if corn goes to three 50, we better hope, we better hope Uncle Sam is bailing us out. 34:36 This is risk management, you know, right then and there when the seed is still in the bag in the shed in the middle of the winter and it's blowing snow 34:44 and you're looking out in the county that says, wow, the county already has to yield a record. And if the county yields a record, 34:52 how am I going to perform? Yeah. And it goes back to my comment before RMA continues to evolve. 34:57 These programs subsidize these programs to provide a better safety net that can't be bought and forgot. 35:05 It has to be managed alongside the marketing. By the way, you gonna share your screen? I can certainly do that. 35:13 Well, I, I don't know. I mean, we we're, I I get it By the way, to these listeners, I realize we're, this is a long discussion. 35:19 It is the one that you need to listen to, you get excited about how to get two more bushels out of every acre. 35:25 We're talking about how to guarantee revenue to keep you solvent. So Kelly, you are in that range right now 35:31 that you're gonna be a hundred dollars above water, a hundred dollars, your head's gonna be a hundred dollars above water on, on uh, corn acres. 35:39 Yes. You know, the other day we looked at when I was down there with Jared, and it depends on where we, 35:43 where we predict the yield to come out with Crawford County, things like that. Uh, it, 35:48 it looks like it'll be in excess of a hundred dollars. And I, I'm happy, you know, because, But I'm gonna correct, I'm gonna correct both of you. 35:57 Not to be rude, I don't care if the insurance money is coming or not. No. 'cause it'll either come from the insurance money 36:05 or it'll come from the sales, or it'll come from the yield. Again, the three-legged stool. I agree. 36:10 Yep. But as of today, yes, the insurance product is deep in the money, but we have a defined timeframe when 36:16 that protection goes away. And that also Pandora's box for a whole nother conversation that's not meant for this. 36:25 But how do you define success in today's marketplace for any operation? I'm gonna define success in today's operations of 36:38 maintaining working capital or building it, building equity, and certainly not losing it and taking a step forward. 36:46 And at today's cost production, that is a hell of a feat. And you think about how much revenue it takes 36:55 to offset that expense. It is a hell of a feat and standard crop insurance and little to no marketing. 37:02 Good luck. It's just not gonna happen. By the way, Jared, there's gonna be somebody that's gonna say, wait a minute, this thing you got out 37:07 there and you start talking about, uh, it's better to be short and all that. Are you saying that, uh, I sold more than I actually have 37:14 because that gets people witty, right? Nope. I'm gonna go back to, again, I, I don't, all I'm trying to do here is maybe bring awareness. 37:26 Yep. Make up some awareness joke in any type of other walk of life or making awareness of the, 37:35 the synergy, the fluidity between your marketing and your insurance decisions. And bringing awareness to, if you choose not 37:45 to use a certain type of program, you have to also answer to yourself why you chose that. 37:52 And unfortunately, in the ag space, it's often led by, oh, that costs too much money. Or, oh, that doesn't work that way. 38:00 Here I've presented in 40 different states in the US plenty of agriculture. And that is the number one joke. Farming is different here. 38:11 Yeah. No, it's not. We all spend money to make money. You have access to the same RMA products. You have access to the same Chicago Board of Trade. 38:20 It's all a math equation. It's a business equation. So lemme jump in this spreadsheet here real quick. Manu. I'm ready. Okay. Uh, by the way, if you're listening 38:30 to this, again, I encourage you to come back and watch it. You can listen to it and get your, and get your bearings 38:34 and your, and your maybe in a piece of equipment. But you need to watch this right now. Jared's got a a, a sheet up. It's a spreadsheet. 38:40 It's real simple. He's got it's trend adjusted, uh, a PH and we're gonna go from there. All right. So first off, 38:46 why do I specifically have trend adjusted a PH in the last several years with the big, big yields that the US has kind of been experiencing? 38:56 Our a PH has been going up and up and up and up, but also it wasn't all that many moons ago that the trend adjustment factor actually came to light. 39:06 Trend adjustment factor is adding yield to your historical yielding years to adjust for today's trends. 39:15 All right. So when we talk about Kelly's proven yield, a proven yield and a trend adjusted a PH are two different things. 39:24 If a farm actually goes and achieves a overall yield above their trend adjusted factor, that is a really, really good crop that year 39:35 because it doesn't happen that much. Hmm. That's why benchmarking things on above or below a PH is a completely misguided 39:45 misconception anymore. So I'm gonna say just randomly 200 bushel trend adjusted A PHI have a 4 66 spring insurance price. 39:57 And real quick, Damien, I just want to verify, you can see my screen right? Yep. We can see it. Okay. 4 66 and 40:04 You got the various, you got coverage levels here. Yep. So spring price, do I need to set that? Do I, once I set my do, so 40:11 The RMA does that for you in the month of February. Okay. And then it's gonna recalculate in October. And RMAs gonna, the grace 40:18 of their heart gave you the higher of the two. Okay. So I'm just comparing what is my revenue guarantee 40:25 by taking my a PH times the spring price times 95% coverage down to 65%. 40:32 For starters, there's not many 200 bushel corn producing, uh, farms in the US 40:39 that can even make money at 885 bucks. All right. I'm talking about 95% program. Well, if I can't make money at eight 80 5:00 AM I really 40:49 willing to risk another 80, $90 an acre drop on going to a more standard 85 or 80% program. And yeah, it's no secret the higher coverage you go, 41:01 the more money it's gonna cost you And premium. Yeah. But It also is a silly component of that cost too much. 41:07 Well, relative to what, explain to me what you can accomplish for the same amount of money that you spend on insurance policy that's subsidized 41:17 by the government and explain to me how they operate the same way. You're not going to be able to, given the subsidy rates, 41:25 they are always going to be cheaper than what we can go accomplish in the industry otherwise. Right. So I got these various revenue guarantees, 41:34 various coverage levels I'm punching in a current corn price of 4 0 5 or back to that simple mass at these revenue 41:42 guarantees divided by the 4 0 5. This is telling me what my yield has to be. If I'm a 200 bushel corn grower 41:51 and I only yield 1 96 this year, I'm probably pretty upset. Or mother nature really dinged me, 41:59 but I only have to yield 1 96 and the market has dropped 60 cents a bushel. What do I have my hands on? Mm-Hmm. 42:08 Or, oh, I only went to 75% and I got a yield 30 bushel below my a PH to avoid any type of coverage from my insurance. 42:18 Or let's do it a different way. I got my revenue guarantee divided by my actual yield estimate, 42:26 and that's gonna tell me what price has to be 95%, 90% awfully close, 85%, but 95 and 90% coverage programs. 42:36 If you yield right at your A PH, you actually have some coverage. Arguably, most people are gonna be raising above their A PH. 42:44 And so that coverage price is gonna be a little bit lower. But let's put all the dots together here for a good example. 42:51 By physical grain revenue bucket one, I yield 200 prices, 4 0 5 in the eyes of the government, 42:58 I generated $810 an acre. Yep. And I know, again, what my revenue guarantees and we needed to be up here. 43:08 I generated eight 10 at a 95%. I was guaranteed 8 85. I'm $75 an acre short, therefore I have an indemnity. Yep. We just determined 85% no indemnity. Right? 43:22 Pretty simple math there. But that's bucket number one. Crop insurance picture bucket number two, sold grain. Bucket number three, unsold grain. 43:32 Let's just assume that I sold 50 bushel an acre at the insurance price back in February of 4 66. Yep. 43:40 That's not a pie in its sky number. Note that I'm not using five or five and a quarter or five 50. 43:47 A realistic number. Yep. That the Market's a real number, but you, but you only sold 25% of expected yield. 43:52 So that means you have 150 bushels out here that are uncommitted. So that means I still have 150 bushel to sell. 43:59 And at a 4 0 5 price, I have a sold revenue at 233 bucks an acre. Got an unsold revenue that's changing 44:07 with the market every day at 607. I combine the two of them. Here's my revenue pictures going back down. 44:18 All those insurance levels from 95% all the way back down to 65. Note that from 85 and lower, it stays the same. 44:30 There's nothing to change there. Well, why? Because there's no indemnity. Right. But let's take it one more step. 44:39 Now I get to define what is my true financial coverage in the market. Again, don't care where it's coming from. 44:46 What is my exposure in the marketplace? If, if price would fall from four to three 90 or three 80, note that we are still seeing 44:58 these insurance coverages to a certain level. Yeah. Increase in overall revenue. And where does that stop? You can see here on 80% policy 45:10 that my revenue at four is at 8 33. But at three 80 it's gonna drop clear down to 8 0 3. Pretty simple to understand 45:18 because my insurance isn't doing anything for me. I bought an insurance product, it's not helping. But 85% you can see if flat line meat, that means that all 45:28 of a sudden if the market continues to drop more, I'm generating more revenue. Mm-Hmm. Or in the 95% bucket, this is 45:38 where the percent sold a dime drop in the market. 200 bushel corn, my revenue should drop by 20. But in this situation, the market dropped a dime 45:49 and my revenue went up five. And the reason being, my crop insurance does not care what I do and don't have sold. 46:00 But my crop insurance is going to protect everything across the masses. And I want to do one last piece here. 46:10 So I'm saying at three 80 corn, if I'm carrying such as a 95% program for real products out there that guys could be using, and I actually yield 46:19 200 bushel corn. Well, here's where again, rubber meets the road. I'm gonna take my 928 bucks that I generated 46:29 across a 200 bushel corn yield. $4 and 64 cents. What's that mean? My total revenue divided by my production is going 46:40 to give me a net price of 4 64 in a $3 and 80 cent market. And I only sold 25% of my crop. Alright? 46:51 Now, by the way, that's revenue that comes from insurance. What happens to the crop? Uh, you, 46:55 you've gotta still sell the crop, right? Oh, We're calculating that every step of the way. If the price drops, my unsold revenue's dropping, 47:05 I'm adding all these together. And it is important, a quick comment that the insurance coverage goes away 47:11 during the month of October. And Kelly's operation, we will be forced to go back to an aggressive percent sold 47:19 because my floor from insurance is gonna go away. All right, Kelly, by the way, there's a lot, again, there's a lot, there's a lot of stuff going on here. 47:27 So from a farmer perspective, farmers like to make bushels. Um, this is, this is obviously very important. 47:34 The business side of it, the revenue side of it. What's the hardest thing to get past? The hardest thing to get past is 47:40 to wrap your head around that. You don't care where the dollars come from, that you just need to do a good job at everything. 47:45 To understand that, think about it this way. I only raised 187 bushel corn last year. I hope I raised 235 bushel corn this year. 47:54 I made more dollars per acre last year than I will this year by a couple hundred. Yeah. We, we produced $200 more last year. 48:01 'cause there was more marketing opportunities and things like that when you had that market. So that's probably the hardest thing to look at, is in a, 48:10 in a tough market, the, the ability to generate more dollars per acre, which is what we're all really trying to do. 48:16 Dollars per acre. Yep. We generated way more dollars per acre last year than we were. 48:21 This year's a little bit depressing. When you think about the huge yields we have. And that was always the number one goal. Number one goal. 48:28 How many bushels did we produce? Now, the number one goal is how many dollars per acre can we produce? 48:33 That's the mindset you need to Have. Is your, is your, your 71-year-old dad understand this? No. No. 48:40 He, you know, I've gone down there, I've gone down to Jared's office, sit there with Jared and Jeff and I come home and I've told my dad about it and, 48:47 and told my sons about it. You know, Vern and cheese and things like that. And my dad's like, I would like to go. 48:52 So he went a couple times and now he's comfortable with it. You know, he has faith in Jared, and you know what he says. 48:57 Now, I don't understand. I don't need to go back, just do your thing. But I do, I do take the boys 49:02 to Jared's office on quite a regular, uh, uh, time. And we talk to Jeff because I want them to understand, I think this is the number one thing that farmers don't, 49:12 farmers love to chase cows drive trackers and raise big yields. They don't wanna be in the office 49:16 and they don't wanna understand the numbers. And that's the weak spot. And, and the decisions generated in here 49:22 are very, very important. And we need to do a better job of that. Yeah. This is, this has obviously been a very long 49:27 episode, and I know that we probably lost some people because it's not sexy, but the thing is, It's not, but it's important. This is important. Well, 49:34 I, you know what, I, I don't enjoy sitting and talking to, uh, uh, the financial planner sometimes, but I enjoy the fact that I have a second home 49:42 because of the financial plan. Right. You know, I, I mean, let's face it. So, uh, you can talk about not being sexy, 49:49 but at some point money. It's not about, uh, you know, you the giness and you want to have a, you know, gold jewelry. 49:56 The point is the money keeps you, uh, from being, uh, uh, nervous at night, you know, and all that. 50:02 So this is just managing that. What do you think, Jared, when you look at these, uh, situations, there's gonna be people, like you already said, 50:08 the number one thing, you've, you've worked with clients, you do work with clients in multiple states right now 50:16 as doing ag financial consulting and, and insurance, uh, brokerage. But yet they'll still tell you, oh, 50:24 yeah, that doesn't work here. Farming doesn't work here, here. This programs don't work here. You hear this. 50:28 And every and every, they probably, they probably tell you that from township to township, 50:34 You know, a lot, you know, a lot of farmers will say it doesn't work here. But I think a lot of farmers are hearing 50:39 that from their insurance agent. Kevin Matthews told me that you couldn't do this in North Carolina. And I said, Kevin, you're being misled. 50:45 And I, I showed him his numbers. I, I went to Jared and CRE Craig. I got the numbers and I presented 'em to Kevin, 50:51 and he, he didn't know. Now he knows. I, I think it, it's not, it's not just a lack of education with the farmers. 50:57 It's a lack of education with the insurance people. Is that where it is? Is the insurance, crop insurance in general, 51:03 Jared is where they drop the ball. It's, uh, a little bit of both, right? It, it's across all ends. 51:10 Do you like a, uh, vacuum salesman come knocking on your door dam? Yeah. Right. No, Probably not. Right. 51:16 And they're probably gonna have a price tag that you really don't like. And that's almost the same battle that anybody 51:21 that is providing any product to the farmer, almost in any walk of life, that's expensive. Well, think about how about this? 51:29 Think about this product and what have you said throughout this episode, Damien? The complexity of it. Yep. 51:34 So the average, you know, it's hard for, it's hard for a farmer to understand it. It's also hard when you're tying in the marketing portion 51:41 for the insurance person to the insurance person to understand it. So here's something that I would like the listeners, 51:46 the growers to understand. If your marketing person or your insurance person, probably more importantly, if your insurance person doesn't understand marketing, 51:55 if your insurance person doesn't understand the complexity of this product, how are they ever gonna 52:00 come and talk to you about it? And then I'll tell you, this product this year costs me about $47 an acre. It's expensive. Again, like Jared said, relative to what? 52:10 So you have a farmer that thinks it's expensive. You have an insurance person that doesn't understand the complexity and can't explain it. 52:17 How are they ever gonna tell the farmer? It's not expensive. So it gets lost by the wayside. People become uneducated. 52:23 They don't pay attention to it. They don't know how to talk about it. And then you have people telling Kevin, 52:28 well, you can't do that here. It's simply not true. You need to educate yourself and you need to deal with people 52:33 that are educated on the products they have. Yeah. By the way, it's still thing, nothing's expensive in, it's all in relation 52:41 to the value proposition and the value proposition. Yours when, Yes, when I, like with Kevin, for example, 52:48 with Kevin's had a drought this year, and now the bushels have gone down. Kevin's county was forecast in North Carolina 52:55 to be 157 bushel. You know, Iowa here is 2 25. Kevin was 157.3. I asked Kevin, what do you think your county yield will be? 53:05 He said, we'll be lucky if we make a hundred. Craig, Craig Malone, that works with Jared, my agent put the numbers into the computer. 53:11 If Kevin's, if Kevin's county only makes a hundred bushel, it's a $408 claim. 53:19 Yeah. Four $8. That costs 47 bucks. Uh, for Kevin, it would cost $40 because he is not guaranteed quite the bushels. 53:25 We are $7 cheaper. Kevin would get a four. Kevin would have a $400 claim. I'm incredibly confident of those numbers 53:32 because it came out of the website from the insurance company when I was sitting there with Craig, you put it in. 53:37 But the, what the farmer thinks it's expensive 'cause it's $40. The insurance person can't explain the complexity of it, 53:44 and it just gets thrown by the wayside. I know it's complex, but it's not impossible. Well, The thing is, you know, my, my, uh, I've got some, 53:52 I've got some business dealings that are complex also, but also they make me money or they keep me from, uh, uh, from losing everything I got. 53:58 Yeah. So you, you know, sometimes you gotta read the prospectus, whether it's whether it gives you a headache or not. Jared, 54:04 I know know this isn't, I know this isn't sexy because we're not talking about 300 bushel corn, but we're talking about hundreds of dollars an acre here. 54:12 This is one of the most important things to talk about, especially when we're in a down economic here. Earlier today, Damian, you and I recorded with Gerson 54:19 and Scott Lake, we talked about becoming more efficient on inputs. Here we're talking about maximizing our, 54:25 and utilizing, uh, our ROI or our gross revenue per acre in, in a $4 and 5 cent December corn environment. 54:33 There's nothing more important than what we've talked about today. Jared, Is the real issue on this one. 54:37 Like you kept talking about the 95% coverage, and I'm getting the hunch that many those farmers that, well, many of 'em have to get a crop insurance 54:47 to get a loan, to have operating money. The bank says you're also gonna be insured. And also the US Department of Agriculture, uh, 54:55 backstops this and subsidizes crop insurance. Farmers don't like it when they're told that, but that's the reality. 55:01 My god, we all know this. So you're getting this subsidized insurance to guarantee you, um, a certain amount of revenue. 55:08 Then they say they stop at 75 or 80% because their cheapness kicks in because the real value looks like 55:16 paying for the better insurance. What stops them is probably different everywhere. The real Value than done insurance, the 55:26 Real value is setting the guarantee per acre as high as possible, which is a higher level of insurance. But that's the, that's the real value, is setting that floor 55:34 as high as possible. Right. Has it, have you, have you seen it, Jared, in your experience where you set the revenue at the highest 55:41 level, the 95% guarantee backfire, and somehow the 75 or 80% makes more money for the operator? Uh, no. No. Okay. 55:54 How, I mean, everybody knows ag markets. It's not just a cycle one year either. We're trying to always look at things across 56:02 2, 3, 4 year stretches. More often than not, this is gotta be, this is a loose statement. 56:11 The lower end of insurance, uh, coverage and especially the heart of the corn belt, is going to come with a little bit more stagnant marketing. 56:24 I say more often than not, that's going to kick some people off. All right. Yeah. Yeah. That's dry land production only. 56:32 But you have a greater, you, you do have a greater risk marketing, something as aggressive that you're not guaranteed ahead of time. 56:44 Yeah. Yeah. Hence irrigated versus dry land. You're at, you're at, you're up, you're at more risk when you're, when you're not irrigated. Well, 56:51 No, I'm just talking just straight up dry land. Lower level of coverage you carry, that's a less amount of bushels you can market. 56:56 I mean, dam, and I'm just gonna summarize it this way, and Kelly kind of alluded to this, and again, this isn't meant 57:03 to put anybody on a pedestal here, not an advertisement for a business. It's almost like a cry of the help to the farmer 57:09 of if your agent doesn't know something or your broker doesn't know something, or your grain buyer doesn't know something, 57:15 but you count on 'em. Yep. Well, why? Okay, ask yourself why not looking for an answer right now, but why are you, it's the old saying, you're not going to go 57:28 to the car mechanic for heart surgery. You have to have somebody that can understand the entire, all the cogs in the wheel just summarizes it 57:41 That way. This navigates a little bit of government program as well, because government program does dictate the insurance 57:46 programs, the insurance programs are available, and they have very, and We can just go get a six pack 57:50 and continue this conversation for the next two hours if you really want. Keep going, but I don't think your listeners want to. 57:55 No, but the point is, there's there, these insurance pack, these insurance programs, they, they vary a little. 58:01 They've, they have moved a little, they're a little different now than they were five years ago. 58:05 They, they better than what they were. They've evolved. They've evolved. All right. You said something before we hit the record button. 58:13 Uh, and I want you to close me out with this. You said it's a mentality, it's not just the math, it's a mentality of 58:22 how you look at this entire thing from your operation to your marketing plan, to crop insurance as a marketing tool. 58:28 Yep. I mean, it's just a mentality running a business anymore. You have a business, Kelly has 58:34 a business, I have a business. At the end of the day, it's just math and just gotta, I mean, keep it that simple, 58:42 that, that's almost like a reverse, uh, logic from everything we just talked about. But keep it that simple dollars and dollars out. 58:50 What's gonna help you get the most dollars in and how are you going to manage that throughout the year without buying it and forgetting about it. 59:01 I'm gonna, I'll, I'll close with that. If you go ask your agent about using some type of a buy, buy-up coverage, 59:11 and you don't have somebody to help you understand the marketing component of it, you're asking for trouble. 59:18 That is where you can start spending. How do you word, how do you word this appropriately? Spending money with no return on it, 59:28 because you never capture the opportunity that comes with it in a volatile market. Well, we just talked about all this time with 59:37 what the markets have done in the last couple years. We have, quote unquote, successfully captured the additional revenue by adjusting our positions. 59:48 And if you don't have the ability to understand how to adjust your positioning in the market and how your insurance is impacting that, be careful. 59:59 Don't want you just going out the air and spending money, uh, and just counting on something to be priced in February, 01:00:06 be priced in October. I yielded this. Well, did it work? That's not the definition of did it work or not? No. 01:00:14 Kelly, main things that you and I both, I, my take away is, and I'm not the one that's buying the programs you are, 01:00:21 it's not inuring a crop. It's ensuring revenue so that you can be here tomorrow, the next year or the next year after that. Right. 01:00:27 You're insuring revenue. That was, you know, like in talking to Matt, that was, Matt talked about not needing a policy like this in Arkansas 01:00:34 because everything is, is irrigated and the yield never changes. And I'm like, Matt, I understand that, but the revenue does. 01:00:42 You're insuring revenue. And, and you know, Matt, uh, Matt is one of the best farmers I know down a hundred percent irrigated 01:00:49 down there in southeast Arkansas, and he looked at crop insurance from a yield component. And, and now Matt, Matt's on board Matt's side. 01:00:57 You know, he, nobody had ever told him that perspective before. We're ensuring revenue, Matt. We're not insuring yield, 01:01:04 We're, leave it there. Kelly Garrett, one of the founders of extreme Ag. This iss a long episode, but again, a very, very, 01:01:08 very important one. I want you to share this with somebody who can benefit from it. 01:01:13 And you know what? Watch it a second time. Listen to it a second time. Jared Creed with JC Ag Financial Services. 01:01:19 He, he's, uh, he, he works with, uh, guys like Kelly. He works with farmers to make them more money and protect their assets, keep them solvent, make them, uh, 01:01:26 revenue positive, which is the most important thing. So you can look him up also, if they wanna find, if you wanna find Jared, find him through Kelly. 01:01:32 It's, but as simple as that. Um, and, uh, he's got a lot going on and he does understand the three-legged stool, uh, 01:01:38 to help your farming operation. So next time, share with somebody again, it's a, it's a long one. 01:01:42 I know. But thanks for sticking through here with us, Jared, thanks for being here. Thanks, Danny. Thanks, Kelly. Kelly. 01:01:47 Kelly, thanks for the inspiration on this because, uh, I said, you know what, we gotta do a crop insurance as marketing tool episode. 01:01:53 And I know it's gonna be, it's gonna be, it's gonna be a little bit of a struggle, but we're gonna get through it. 01:01:57 So next time, uh, we did it. Yes. I know it's boring, but it's important. It's the, it's, especially in times like this who 01:02:04 Is boring. That's, I don't think, hold on. Now talking About, we're talking about money. It's not boring to me. It's not boring to me either. 01:02:11 You know what, uh, it, it's a little bit, it's a little bit tedious at times, but you know what, uh, I think that, uh, 01:02:15 and if you wanna keep the, you want, everybody talks about legacy, start here. Till next time, thanks for being here. I'm David Mason. 01:02:21 This is extreme ag cutting the curve. That's a wrap for this episode of Cutting the Curve. Make sure to check out Extreme ag.farm 01:02:28 for more great content to help you squeeze more profit out of your farming operation. 01:02:32 Cutting the curve is brought to you by Simon Innovations. Don't let your sprayer's limitations hold you back. 01:02:38 Visit simon innovations.com and upgrade your sprayer's capabilities now.