Global Ag Risk ?

[gustgd]

Hmmmmm....... GARS, an initial payment and now waiting to see what the final payment will be. Sounds like the CWB model.

Shouldn't be too much unknown at this point. Quantity is a known. Quality is a known. I think we're far enough into the crop year the market prices are even kind of known. What's the hold up?

A different story for those who still have crop out yet to be harvested.

Should have been done but waiting on truckers.....
Durum is crap but is it $3.00 crap or $1.50
If dealing with feedlots and it's max 15ppm vomi and it's showing up at 18...
Quantity is also a estimate I know it's not 62/durum in thos 50,000 bu bins. Most tests came back 58. Someone loads 55..
When we had a big hail storm do damage to the house I was 7 months dealing with SGI, I don't think it's unreasonable to wait until May of the following year to make a better cutoff.

As far as financial strength, we're pretty healthy although that's why you buy insurance. Now we can go into 2017 crop year and farm as if we're trying to get a good crop and not just basics waiting until financial health allows to tak chances again.

[bucket]

Gustgd

Just out of curiosity would you share a ballpark premium on a per acre basis with the rest of us....

When I looked into it a couple years ago the premiums were pretty high considering its whole farm insurance not crop specific.

[Richard5]

Just so everyone knows, its a full reconciliation of farm production to the end of May. The income calculation uses what you end of selling it for and that's why a 2 part payment system.

For my farm, I have sat in a number of presentations including one in Saskatoon this past December with both GARS and Just Solutions outlining their most recent changes.

You need good financials in a specific format and maybe Gust can comment also. If you don't have them in the format of gross margin, labor power and machinery, they will redo them internally to arrive at a quote. From what I am told, there is only one Agriculture firm that prepares their financials in a compatible format

For me, I have not entertained this type of insurance yet as I feel I am at a comfortable enough state that I can somewhat self insure. I continue to be in 80% crop insurance and AgriStabilty

[SASKFARMER3]

Now that you collected for the durum where are they going to be on premium this year! Also if you would of had canola and selling it now would that have made no payment

[bucket]

A couple bad revenue years and I have a feeling it's like agstability. ..the law of diminising returns...

[RD414]

2 sons are in gars. $15 gets roughly $260 acre insurance. 160 on inputs and another 100 bucks on top. They were eligible to get 125 over inputs but chose 100. 3 years into program. Had payout first year due to hail hitting most quarters. Think premium dropped second year because the program was still being tweeked. Their canola is off and great yields this year, wheat is still in field. No payments yet this year. Nobody walking the fields, nobody climbing bins, lots of record keeping and you need to know your costs.

[gustgd]

Now that you collected for the durum where are they going to be on premium this year! Also if you would of had canola and selling it now would that have made no payment

This year isn't so bad. Think next year would be the year premiums really jump. Although if they're not competitive, they get dropped.

Bucket
Want to say last years premium was $11.00/range for seed/feet/chem +$125 for fixed
Plus we had SCIC on durum for quality. Sorry can't remember premium on that likely similar to others?

I wish we had went higher on GARS. Sort of like tweety was referring if someone offers you a chance of farming with worst case scenario breaking even with unlimited upside.....

Not saying SCIC doesn't have its place, but bad yields and good prices is ok. Bad yields, bad prices and you're looking for a winter job.

[gustgd]

We do the best we can, three bids. Best deal including trucking gets it.

Insurance is not a right. If they don't like the way we do business, either premiums are higher or we don't get it offered.


Some stuff that was stupid high vomi, tough, and had ergot was worthless. We dumped it in a slough with their full knowledge.

They have the right to do an audit for a period of time. Maybe 3-5 years. I'm sure they have algorithms that red flag certain behaviours and metrics.

As bucket stated above. Like many programs it would have diminishing returns. That said no one is guaranteeing you a life of farming. If someone said it was easy they were probably selling something.
G

[furrowtickler]

We just found that being in gars and crop insurance was not the right thing for us .
2013 we got zero from gars and $85,000 from crop insurance @60%
If we were in full top up with gars it still would have been zero . Full crop insurance would have been a payout closer to $200,000.
We just seen it as we can not loose 1/3 of our net income these days with no coverage because 2 other crops kept our head afloat . Again even if we topped up from gars - we would have got zero .
One can not just keep your head afloat any more.
Unless you have far better financial background, ie big money coming in from outside every day farm revenues , ie inherited money or oil money that loosing 1/3 of your gross revenue is not an issue.

Not sure if that makes any sense but that's what our experience was .
Every farm will / may be different.

[gustgd]

http://agrisksolutions.ca/news/global-ag-approved-by-aafc-as-security-for-ccga-advance-payment-program