Global Ag Risk ?

[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

[Klause]

This pretty much validates ag risk.


Also like the professionalism and insurance based on numbers. Not "auditing" fields every summer (the joys of being a new producer) and bins in fall. Too much to do to waste time



Probably will keep canola in crop insurance and maybe peas as they are our higher risk / return crops

[Richard5]

Personally, I have a really big problem with taking an advance on an insurance program whether its crop insurance, Gars etc.

I guess for those that have had big time losses for a few years in a row it may be your only option. To me the risk is far to great to risk a $400,000 advance which often be a 4000 acre farms profit for the year.

I guess if it works out, the farm shouldn't have to rely on it as much or at all the next year

[iceman]

How do yous like gars now ??

Judging by the Social media rants this spring I would fade that trade

Iceman Out

[Guest]

Seriously ,anyone happy with it? Anyone feel they got shafted ?

[biglentil]

I heard that the cutoff date on GARS is May 31. Geeze wish I would of known that. That's like calling "No more bets" just before the ball drops.