Latevo multi peril insurance?

[malleefarmer]

This is basically how it got explained to me by latevo,not sure about price protection. If grain collapses like this year.

Is this similar to Canadian programmes? And farmer pays premium no help from Govt.

Farmer Joe has 2000 ha of wheat @ 2 t ha and $250 on farm = 1,000,000
Its cost farmer joe $150 per ha in direct costs plus another $100 per ha in interest and machinery repayments etc so $500,000 costs or 250 per ha cover.

A frost comes through and wipes out 60% of farmer joes crop hence his income is down to $400,000 latevo will pay out $100,000 in that scenario to get him back up to $500,000 his covered rate.

If 80% loss he has income of 200,000 latevo would pay out $300,000.

Common misconception is you don’t need fire/hail insurance if farmer joe has 1,000,000 crop in paddock a week before harvest a storm goes through and wipes out 20% of his crop a $200,000 loss his income is still $800,000 they would not pay a cent as his income hasn’t fallen below $500,000 income level.

The premium for above scenario in rough figures is $38,000 plus $5500 audit.

$5500 is paid up front.

Some banks for farmers who rent or lease a lot of land with little asset base for collateral are now being expeted to go with programme.

[malleefarmer]

And with all the floods in Canada wouldn't have you guys collected or not that easy?

[ajl]

Crop insurance in Canada only covers yield and not price. If you came to western Canada and started farming here you would wish there was no crop insurance. The coverage levels are so low they are a joke until you get your own yields will take a minimum of 5 years of great crops probably more. So what happens is that you have a crop problem in that initial five years like hail that reduces your yield you will get no payout and still have to pay your premium. The same old farmers in the neighborhood that collect every year will have your money. For new farmers the crop insurance system is worse than useless.