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Margin Insurance the way of the future?

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    #31
    Hopperbin, I could tell you my margin number and then i would have to find out who you are and shoot you. They are fairly good.

    Comment


      #32
      Mark has explained it well. GARS has built a
      model using over 15000 farmers data to show the
      reinsurers where to price and makee money. It
      has to or everyone goes home.
      Biggest risk to private insurance that I see is the
      copycat companies that come in and try to
      reverse engineer the program using Agristability
      or even worse cash basis accounting. Then
      farmers will start to see long payouts and fraud.

      It is just math, if you spend a dollar in expenses
      and are insured for that dollar it's covered.
      Theory being that you won't spend it unless your
      likely to see a return. Farmers hate wasting
      money more than insurance companies. The
      $25, $50, $75 $100 margin over expenses is
      where the real decision is. IMO that's where you
      self insure. Unlikely that with historically high
      prices/ average yieds tonot ake money this year.

      Anyone get 20 bus canola? What if it was $11.00.
      I know I lose money there. What do you get from
      crop insurance with 25 bu. of $5 wheat.....what did
      someone say earlier this week about that whoosh
      we heard.

      Back to the fraud and risks to company. If they
      insure you you allow them to have access to your
      records for three??? Years after that crop. If your
      neighbours pulling in $250 margins and your at
      $150 red flags go up.

      I hear pricing will come down this year as
      reinsurers have more confidence in program and
      to get more farms in program. Larger numbers =
      less risk #counterintuitive.
      Biggest pain in ass is the building of accrual data
      which they will do for a cost. Or if your accountant
      will sign off on data you supply.
      Just like at the bank better more accurate
      numbers mean better rates. I believe scotia, TD,
      and Affinity CU all use GARS at 85% security
      with others looking. Stay tuned

      And yes cotton.

      Comment


        #33
        "farmers hate to waste money even more
        than insurance companies".

        Sorry, don't tak this personally, but
        sheesh if this were the case, there
        would be fewer new drills, combines and
        tractors out there, and land would not
        be selling for 280 000 a quarter. lol

        Regardless, of all that, If the highest
        margin coverage they offer is 100 bucks,
        for many, regular crop insurance will be
        covering for WAY more than that at less
        cost. Subsidized I know...Which is
        unfortunate. It really is, but reality
        is reality.

        I guess I am in wonderment at the farms
        who have been pulling off such big
        margins, why they,

        1. Have low crop insurance coverage if
        their crops have been paying so well.

        2.Would opt for 100 dollar an acre
        margin coverage, and think that is a
        good deal.

        Still trying to get my head around this,
        I feel like I am missing something here.

        An example:

        If a guy is covered for 28 bushels of
        canola at 11 bucks for a gross of 308
        dollars, he would have to spend 208
        dollars in CASH on his canola?

        And that margin is whole farm with gars,
        right, so when blended with other crops,
        it brings up ones average margin?

        Sorry bout the questions, you all do not
        have to answer them. Just working the
        numbers is all.

        In the too wet years my margin was still
        over 100 bucks due to ci payout, no
        inputs, and some grain inventory
        carryover.

        I guess my point is in this day and age,
        100 dollar margin is pretty small
        potatoes for most crops, I thought there
        would be higher coverage. If the farmers
        they are after are so stellar, why do
        they offer only 100 bucks, and why do
        the farmers think this is all that good?

        Comment


          #34
          Freewheat I agree that the $100 Margin coverage is not enough and they should offer more. As for crop insurance though you need to remember to average across your farm. We can't grow Canola on every acre. Also Crop insurance is primarily production, it does not protect you from a major commodity price drop or Sky high inputs. Having said that though this is really where I struggle with my decision. I believe the tools are there to manage input and commodity price risk and is really the production risk that threatens my farm.

          Anyone that wants to email me direct mark@bratrudag.ca upon verification of which you are I will send you a calculator that I developed that you may find helpful. You can put in your farms information and It will indicate to you very quickly where you money should be spent. GARS or Crop Insurance, so far calcs I have done with few different guys can go either way depending on farming operation.

          Comment


            #35
            damn spell check, I looked at the spelling and grammer of my posts and decided to spell check LOL. trying to do to many things at once. love to get engaged in these conversations but dont have time ha ha ha. anyway WHO you are rather than WHICH, in my previous post.

            Comment


              #36
              ???????????????????????????????????

              Comment


                #37
                Mr.C are you confused or trying to make sense of my last post LOL

                Comment


                  #38
                  Dont understand gustd "and yes cotton" comment.

                  Comment


                    #39
                    Lots of good info not commenting because i don't
                    know as much as you guys.

                    Comment


                      #40
                      Oct 24 @ 22:02 cotton replied about you own 2%.
                      Really....... That's what my yes was about.

                      Comment


                        #41
                        Whoops forgot i had asked the question

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