Now that Agristabilty is anything but stable

[mbratrud]

The recent butchering of the Agristabilty program has prompted me to take a closer look at GARS (Global Ag Risk Solutions). In the past to me GARS did not make sence as Agristability for many was a superior program, and if you participated in Both Agristabilty clawed back the GARS benefit, so it just didn't make sense.

I have done a lot of homework on GARS, and am close to a conclusion but I wanted to put it out there for discussion.

I compared GARS $100 margin coverage to 80% crop insurance coverage, and on our farm it was very close. The advantages to crop insurance were more of a spot loss coverage. The advantage to GARS was the all perils and the certainty that the Margin coverage I chose would be there no matter the reason.

My conclusion with GARS so far is it is superior coverage if a commodity prices broadly fall by 25% or more, or if average input costs rise significantly. Also the more crops you grow on a farm the poorer the fit.

I know one thing it's changing the way I look at Insurance.

What is your take?

[burnt]

It only thing wrong with the changes in Agristability is that they did not go far enough toward encouraging healthy, economic producer independence.

The best change would be complete dismissal of all government programs as all they do is dull producer sensitivity to market signals and natural laws of production.

Someone on here asked the question a while back - and I don't think anyone ever really answered it - do farm programs really provide any income stability, or do they just transfer risk into another arena?

Sometimes I think of the REAL challenges faced by those who settled, opened and developed this country we now enjoy.

In view of those, the idea that we expect to be swaddled in social programs from the cradle to the grave leaves us with the appearance of being a society of complete wimps and tit-slurping, whiney-ass losers. Not to mention the moral hazards such program invariably incubate.

Where did this sense of entitlement come from?

Certainly not from those who faced the real challenges and opened the way before us. They were the real men and women of strength and ingenuity, persisting in their hopes and dreams in spite of all odds.

They had no choice.

Welfare in any form is hardly a symbol of success, but rather, a mark of a failed system.

Someday I'll maybe tell y'all how I really feel about farm programs . . .

[oneoff]

Do we aspire to be the captains of our ships and boats of varying sizes; or are we content and resigned to remain as deckhands?

[wmoebis]

We are all captain's of our ships. What we says goes.

If you don't believe me ask Ritz. He's the Admiral.

[mbratrud]

Burnt - Where did this sense of entitlement come from?

Huh??? How did you get that out of my post?

If you actually read my post I am asking about other risk management strategies guys should be looking at.

I agree we do not need government programs, I am in favour of private Insurance being offered, and in fact the sooner the governement get completely out of the Insurance game. But there needs to be something to replace it, would you drive your car without Insurance and just wing it?

Anyway perhaps I will re-post to get the intended response.

[farmaholic]

I don't see it as a sense of entitlement, just something to cover my ass in an event of forces beyond my control. I never farmed the programs or manipulated inventory to trigger payouts, too honest or stupid I guess. They would never support long term abuse the way they were designed. Unfortunately because of their design, they never supported REAL consecutive margin declines either. So the primary producer is supposed to assume all the risk in this new economic way of farming while the rest that are on the ag tit get their sustenence. I have to utmost respect for those that went before me in farming, but I know my forefathers never had as much financial risk in producing a crop as I have. Back then they faced the same forces of Mother Nature but for the most part the economic risk I doubt compared.
I can kiss my decent margin good bye, the gutted AgStability program renders it useless. Maybe my suppliers will be happy with a percentage of what I owe them, and like us should be happy with what they get, no guarantees!!!

[sumdumguy]

Mbratrud, what other business has margin
insurance?

If you picture yourself the insurer, tell me what
his are? Maybe you would like to operate an
insurance company offering margin insurance?

Ask someone who processed AIDA, CAIS,
AgriStability. They would likely tell you off the
record.

Businesses deal with different crises every day. I
am playing devil's advocate here, want to
generate some lively discussion.

[sumdumguy]

Sorry, that should read "tell me what his risks
are".

[Burbert]

Gag policy changes as gobermonts change.
Once Herr Harper is gone er back ta bean a
minority gobermont. Gag policy will
change agin. Always does, new name for
the same old tired framer programs!!