Kernel;
You are right about concern over farm imputs...
If Crop Insurance has doubt over "uninsured causes" they can easily document what the farmer has spent, and if it was not reasonable... reduce the payment... this is in the Crop Insurance Contract today...
But the payment will not be reduced any further than what should have been produced...
For instance... a herbicide application increased my yield from 9bu/ac to 14bu/ac, therefore the uninsured causes to be deducted from my payment, would be 5bu/ac.
Further, the extra yield lost goes against my index in the future, therefore my coverage is reduced, for future years.
In a disaster year, the will of politicians to enforce this uninsured causes is diminished, as we are already forced to take a "deductable" (coverage is only avaliable to 80%, so added pressure occurs to deal gently with those who were hurt... Many farmers have paid into Crop Insurance for decades... and I see the treatment given farmers is very close to what auto insurance pays out on auto accidents... in this year's examples.
IMHO the cattle folks were the biggest benificiaries of Crop Insurance this year... with all the writeoffs that were done... but I guess that is ok... we need these folks around too!
You are right about concern over farm imputs...
If Crop Insurance has doubt over "uninsured causes" they can easily document what the farmer has spent, and if it was not reasonable... reduce the payment... this is in the Crop Insurance Contract today...
But the payment will not be reduced any further than what should have been produced...
For instance... a herbicide application increased my yield from 9bu/ac to 14bu/ac, therefore the uninsured causes to be deducted from my payment, would be 5bu/ac.
Further, the extra yield lost goes against my index in the future, therefore my coverage is reduced, for future years.
In a disaster year, the will of politicians to enforce this uninsured causes is diminished, as we are already forced to take a "deductable" (coverage is only avaliable to 80%, so added pressure occurs to deal gently with those who were hurt... Many farmers have paid into Crop Insurance for decades... and I see the treatment given farmers is very close to what auto insurance pays out on auto accidents... in this year's examples.
IMHO the cattle folks were the biggest benificiaries of Crop Insurance this year... with all the writeoffs that were done... but I guess that is ok... we need these folks around too!
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