Crop Insurance Saskatchewan!

[skhadenuf]

Your narrow minded thoughts don't even come close to the understanding of government programs and management of a farm.

You probably have a gun loaded in your house or between the curtains hanging in the back window of your half ton.

I never called you a bad manager, but there is always more to the story but you don't understand that.

I hope the government sends you the prize amount of money that you feel you need. I am guessing that because you have your head so far up your ... that they would have to send you twice as much in every year after.

[skhadenuf]

We are here at the coffee shop reading your post,hopefully we can put it on the big screen, wouldn't expect anything more of reply from the world's smartest farmer. You not only implied I was stupid but all farmers that have a low margin stupid remember all those lines about the "right " accountant. We know how the programs work or to be more correct how they have failed. Once people start pluggin in those 0"s or near 0's and they see that they stay with them for years shit is gonna hit the fan big time. And how we got to zero is that don't you know that your margin is revenue minus expense, well your idea of 50 bucks that ended up way lower than that did not cover the cost of getting the foot deep ruts half a mile long on the quarter throughout the quarter leveled, cleaning up the weeds etc.
Just as Hursh stated 100 buck an acre coverage minus 20 bucks premium, now name me a crop you seed for less than 80 dollars an acre so there is your zero.

[skhadenuf]

Sk99 answer the question
ARE YOU REFUSING YOUR CAIS SUBSIDY PAYMENT? Or are you special because of good weather that you deserve that margin more than the rest of us.

[skhadenuf]

Again, I am not calling you and everyone else like you a poor manager.

You can quit calling me a government official as little do you realize I am not that farm away from you!

No I will not refuse what I am entitled to for managing my operation as best as I can with the conditions I have had to work with.

I am actually hoping that the 60% of the normal acres seeding on our farm of over 10,000 will produce a good enough crop and coupled with the gain in revenue that we will realize from marketing the last half of 2009's crop will offset the better portion of our potential accrued loss for 2010.

Not many realize this but as the prices continue to rise, the gain on the marketing of prior year crops will reduce any potential agristability payment. On the good side, you have gained revenue from the market and you will have something to help maintain reference margins in the future.

We don't farm for programs, at best they only cover 55-70% of the actual loss incurred. We don't farm for tax reasons (ex: equipment purchases to reduce tax), its better and cheaper to pay the tax.

When I refer to differences in management, this is two areas that are huge. Although they don't direct affect agristability and crop insurance, they indirectly do because other decisions are changed down the road.

Good luck to you but the coffe shop won't help your situation either!

[freewheat]

SKhadenough, you must be my neighbor.

ONCE AGAIN

2004 Frost next to no crop Margin near 0

2005 late decent crop dryed every bushel, mediocre margin from low prices, poor carry in

2006 seeded 110 acres wheat that is it, too wet to seed next to 0 margin

2007 seeded 0 acres with drill, 150 canola with plane, too wet to harrow poor crop next to 0 margin

2008 decent year finally, poor margin from 0 inventory from previous years

2009 decent year, finally got a decent margin

So, as you experts may see, my best years margin which was 2009 is dropped. My worst margin of probably 2005 is dropped. My 2006, and 2007, and 2008 margins remain to average out into a pathetic number.

The only reason anyone heard of this years wet troubles, is because it finally extended out of our neglected area. Those wet and frost years never got a blip of media coverage.

This year 0 acres seeded. Margin expected, pathetic. Agristupidity payment expected? Not a whole lot due to previous factors beyond my control.

I think SF3 is the guy that called into Gormely stating we should get no money because the guys who actually tried, and spent some money on tires, well they got seeded. Yeah right, did his area have a 2 or 3 day seeding window? during which NH3 was unavailable?

I think checking is the other guy that phoned in and said how farmers always have some grain on hand, so just live on it.

May the next 10 years bring drought to all the formerly dry areas of the province so our area can seed and capitalize on others misfortune, and grow the crops this area is noted for when the weather cycle is dry. Like 1988, 1930-1938, 2001-2003.

It seems like some do not get this is the third time in five years for some areas. No matter how much you say it. HMMMM, wonder how their farms would fare in the same conditions? Even the old loaded farmers are in trouble here.

[freewheat]

SORRY SF3, I meant SF99.

[checking]

There are lots of varieties of nuts to choose from. So I guess you're calling my boss, and your premier a walnut. (lol)

Now to the serious part for your internet cafe group.

What are your contingency plans, besides threatening governments? I know that you each have one, just like you have gone through fire drill plans and actions with your family in the event that your home burns down.

This is all about comparisons. Young guys like freewheat have indicated that you're 70 bushel canola country. Well, skhadenuf, for your information, it would take me on an acre by acre comparison 2 and 1/2 to 3 years of production to equal what you could grow in a single year. Just what in the blazes have you done with your money when you hit a normal production year?

I know the answer to that. I've seen it with the STF. You spend to the level of your income which then becomes your normal lifestyle. You get terminated, and you can't find a new position, and all hell breaks loose. A few stats from the 80's. Teachers had a choice between receiving their salary over a ten months basis, or a twelve month basis. Guess why the vast, vast majourity chose twelve months?

Protect and budget your income. If you can't do it, and 10,500 of the 11,000 teachers couldn't do it over a two month summer period, then sk99 advise about an accountant isn't stupid farm advise.

[freewheat]

I have never grown 70 bushel canola in my life. I think the post you are referring to is wehen I stated that hopefully the southwest can produce 70 bushel canola to offset the loss of a massive canola regions productive capacity.

I repeat, I have never, and am not in 70 bushel canola country.

[skhadenuf]

There is reason why area averages are what they are. We don't grow 70 bushels either, 40 is considered a good crop so in the last 5 years for cais 2 out of 5 crops give an average of 16 bushels an acre but with 5 years of canola expense to pay for. Now look at wheat and peas even worst due to prices and peas just don't grow with that much water much like this year.
Freewheat guys from your area and ours and others that have poor margins because of weather have got to get together and get this message out there we are not only working against convincing the gov. but the farmers that have margins that do not want us to get any more because it will reduce their weather based entitlement bonuses. There are lots and lots of us out there just need to get organized more. All it would take is 5 or 6 rural seats changed. People who never experienced this scenerio are starting to understand the details of what there is currently in crop insurance and trust me they are not happy.

[skhadenuf]

Freewheat, a couple things:

I recognize the extreme unfair challenges that you have/are facing. Just a few things that you may want to consider/keep in mind.

Agristability has a negative margin component in the program. As long as you have a positive margin or if not, a positive margin in at least 2 of the 3 years used to calculate your reference margin you will be entitled to 60% of that negative margin.

So with no crop seeded, depending on what gains have been realized in 2010 from old crop inventory sales so far, I would expect this may kick in for you. I am actually surprised it hasn't in your other years.

Second, I would suggest you take a look at your completed applications of the past and make sure of a couple things:

1) I know you mentioned acres seeded in some of those years were very small, but in the years you had inventory carried into the following calendar year, is the quantity, grade etc the correct amounts? Lightweight grain should be shown as a different code because it is different. If you marketed your grain in a different fashion (ex large portion contracted at a price totally different than the price listed, CWB fixed price) these are all things you can do to make your application more representative of your farm.
2) In the past years with not a lot of crop seeded, were there any payments from crop insurance that you may have received in the following calendar year that related to the previous year. In 2004 & 2006 there were lots of settlements paid out in the following spring. These amounts are receivables for the previous year and should be adjusted to reflect this.
3) Do your reference margin expenses include things like interest in the fertilizer, chemical etc. Did you have someone come out and custom spray for you and if so is the custom applc part buried in the chemical cost or is it separated. Do you split the correct portion of fuel from your fuel expense and either classify it as more an overhead cost with automotive expenses or if it is personal, it shouldn't be there at all.

These are just a couple things I can think of that may make a difference in your reference margin calculations. These little things need to be looked at every year even in the good production years. I guess that's why I use the people I do because their approach is the same in a banner year and in a claim year. This will be a significant reason why reference margins will be different from one farm to the next.

Its not all about the term "poor management" like Skhadenuf keeps hammering me on but management includes more than just seeding, planting and harvesting. Management of your books, tax, crop insurance and Agristability information is a large part as well.

Although many beat up this program it still needs to be administered properly with the correct information. Its not about cheating or reporting incorrect information, you will always lose in the long run (which is why many received letters of overpayments). Although it may not have been intentional its just what happens when producers don't recognize the importance of it.