Crop Insurance Saskatchewan!

[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.