John Deere releases new product

In a press conference today at the Commodity Classic in Nashville, Tn., John Deere introduced a new product, but it did not include four tires and a steering wheel.

It was the industry's first Ethanol Policy designed to provide coverage to corn producers, who have delivery contracts for ethanol production. Offered by John Deere Risk Protection (JDRP), the policy insures yield shortfalls below contracted volumes in the event the price to replace the corn rises above the federal crop insurance coverage.

"This will keep farmers from getting upside-down in their contracts," Dennis Daggett, JDRP manager, said. "It will give them the confidence to contract more corn at higher prices."

With the Renewable Fuels Standard (RFS) now requiring 36 billion gallons of renewable fuels to be used annually by 2022, the American farmer will be faced with choosing to dedicate more acres of corn for ethanol production and all of the associated risks that go with it. JDRP understands that current federal crop insurance may not adequately address this increased risk, which has led to the development of this new policy.