sask crop ins

[Daylate]

I'm turning to my support group. I have 2 hours to
fax in my insurance. I farm in east central sask. I
have not been insured in the last 8 years, my 80%
COVERAGE on canola is 33.1 bu. at the base price of
12.36/Bu. It will cost me $22/ac. I'm seriously
considering insuring. What would the masses do.
Sclerotinia has got me nervous for one, among the
usual risks, but this is the first year I feel I got real
coverage. Taking this premium will cut into the
dollars I normally put on for hail. And we are very
concentrated within 5 miles. We have been very
fortunate with weather to get that coverage there
over the last 7 years.
So what would you do!

[freewheat]

Insure it. Your coverage and yield is in
the 400 dollar plus an acre range, as is
mine. I hate to say this, but if you do
not insure, I will come over and hit you
on the head. Personally.

You are at this level, (400 bucks),or at
least I am, guaranteed an income.

My premium is only 14 bucks though.
Guess the "experience discount counts
for something...

Seriously though, did you insure for 400
bucks with hail, for only 22 bucks an
acre? I didn't think so...lol

I agree, the coverage this year is
finally half decent. Whereas coverage
levels used to maybe cover a guys cash
costs, at least now they make some
sense. The bad thing is, it makes guys
push rotations harder.

[Klause]

80% on flax and canola. 70% on everything
else.
Do it! Do it!

BTW.. you have time till the end of the
2nd

[Daylate]

Thanks for putting it so delicate freewheat, lol
Your right, $400/ac is good coverage. And from not
insuring f*#k all the last 8 years I guess they'll get
me on the premium a little. And your also right on
the hail, it's costed us $26/ac for $300/ac coverage
for hail the last 2 years, but when any nugget falls,
even if we can't see yield damage at harvest we get
something back. We have made out well with hail in
the past, only receiving less than our premium back
1 out of the last four years.
But I don't want you to track me down and beat me,
so I'm probably going for it, LOL
WELL MAYBE I'LL PROCRASTINATE ANOTHER 30
MINUTES OVER A BEER.

[agchat]

It is funny how people think differently on
insurance. Since I have been growing canola, I
would of been way, and I mean way ahead of
taking my crop ins. premium on my canola,
and putting it into hail insurance. I guess were
we live, a bit of spot loss hail is almost a
guarantee every year. In fact I lowered my
coverage to 50 percent this year just to safe
guard myself against my expenses, and will
take more hail. Will probably back fire on me,
but like I say the chances of spot loss hail in
our area far out weigh a crop disaster.

[agchat]

If you have not insurred anything for the last 8 years, I don't know why the hell you would start now

[farmaholic]

Sask99: Would it be fair to say
AgStability has been gutted and hail
insurance can get pricy so crap
insurance may be a better bet? Getting
in on the ground floor is expensive for
decent coverage though, should have
listened to neighbors and have insured
one crop to build individual averages
and get premium discount. We survived
all these years and expanded the farm
without it, oh well....

[Oliver88]

I'm assuming most people in Eastern
Saskatchewan will be taking the max unseeded
acreage coverage too.

[cottonpicken]

Sask99,(or anyone)whats your opinion on agstability
after the changes,is just crop insurance good enough?

[cottonpicken]

Not sure if I'm the expert on AgriStability but I can share what analysis I have discussed with my MNP guy.

First, a couple comments on crop insurance. I'm taking 80% because I have 50% discount and my bushels I am insuring are very good. Everyone also needs to remember you are not guaranteeing yourself a fixed dollar amount, its something less than the listed number. You are always going to grow something so the per acre guarantee is deceiving.

AgriStability:

Yes the program has changed and yes payments will be less but it doesn't necessarily mean you opt out.

1) the current rule changes are a 2 year trial period. If you remember 2003 through 2005 CAIS, a two price recalc was done and anyone not in the program lost out. Something like this could happen, however slim IMO.
2) The media and many farmers have been talking about the reference margin changes but not understanding how the calculation is actually done. It is too hard to describe in type so all I am going to say is a margin is the spread of the revenue minus the eligible expenses. Our farm is running about $170 in this group on average so therefore if our reference margin is restricted to this it means that if we have less than $300 in production revenue for the year (crop ins included) AgriStability benefits are possible. There is more to the calculation than simply this but anything less than $289 in production revenue for the year, AgriStability kicks in.

$170 reference margin, %30 percent drop not covered ($51), trigger point is then $119. $289 minus $170 in eligible costs group is $119 or point in which benefits start. If gross revenue for year is $265, then Agristability pmt would be $17.

Not sure if this makes sense in how I typed it.

Will crop insurance be enough? There is no blanket answer for all. If you have good yield history then possibly.

If you only grow crop insurance guaranteed bushels and the commodity prices drop $3 per bushel across the list, then you would be pleasantly surprised with your AgriStability payment.

All I can say everyone is different and the disaster will impact every farm different as well

[cottonpicken]

My opinion on top up for the too wet acres is to save the money.

You are far better off getting something seeded as your potential revenue is so much more from crop insurance and crop production perspective.

There is a huge loss locked in if you are forced to take the $100 as most farms overhead, family draw and depreciation will be over $200 (per acre)

[BTO_farmall]

Daylate,

Yous Pick Up Bob Hawes Land er Whats The Story?????

[LEP]

The two big changes to the program are a higher
deductible and a limited reference margin.

The limited reference margin is the lower of average
eligible expenses or your current reference margin.

I was told to expect payouts to be on average 40% less
than the old program.

[cottonpicken]

Perfect sense,thank you i appreciate it.

[SASKFARMER3]

Perfect, I understand, pay more get less! In east
central flooding is going to happen we were wet
below last fall and this will get it back to where we
were last spring!
Bto you got a little seed plant over that way!