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| Depending on volume, and location, commission will range from 5% (southwest, western grain belt) to 20+%. Again, this depends on volume and location. Also, many agents work for an agency on a much smaller commission, often in a 40%-60% or 50%-50% arrangement.
When I started, I was farming full time, and a large agency owner suggested I sell, because I "understood revenue coverage" (sounded good), and he gave me 5%. Later, I learned (8 years ago) that his agency volume meant he was getting over 20%. I paid my tuition that year, then went on my own.
Also, type of coverage will change commission. Lower levels of revenue and MPCI coverage often pay more, and high levels of GRIP usually pay less.
This year, due to high volatility and price, if premiums range between $20 and $60, with close to equal government subsidy, the commission per acre could be $2 to over $15 per acre.
I thought last year would be the benchmark year for commissions, however with higher prices this year, it will exceed last year. I expect the new farm bill will change things in the future.
My opinions,
Rob
BTW, I don't have a new pickup, but we do have an old "used" car. Good luck in 2008.
Edited by robheyen 3/7/2008 01:16
 (N 11-04 #3 Medium.JPG)
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 N 11-04 #3 Medium.JPG (72KB - 59 downloads)
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Crop Insurance agents & their new trucks
