CAISP Replaces Crop Insurance

[crusher]

I was wondering if CAISP would pick up most of the drop in income one might get from losses covered within crop insurance. Granted crop insurance does protect other items like spot hail and SPE, which on our farm will payout 2:1 this year.

[charliep]

Looking for others thoughts.

The discussion whether CAISP will cover negative margins (Ontario/hog industry the main pushes) will be a major factor here. Assuming at least some need to cover risk (not 100 % equity), I think crop insurance/other risk management tools will still have a fit (maybe at different levels).

[rook]

One thing with crop insurance is that their cheques, I think, are a lot more timely. If CAIS comes up with an interim payment that will cover me for some hail damage, that might be worth considering though.

[charliep]

Just a clarification Rook. Are you suggesting there is a possibility you might not enroll in CAISP?

My thoughts are the CAISP program is the one thing I would have for sure in my tool box of risk management alternatives. I would beg, borrow or steel the money to put into my margin account. Other risk tools (crop insurance, hedging, etc., etc.) would be used depending on the individual farmer risk taking ability, tolerance and comfort level.

[rook]

charliep, I'm going to sign up for CAIS, but I'll probably keep crop insurance too. There are still to many concerns with CAIS for me to put all my eggs in that basket. In the future, though, we'll see. SPE also has some impact on that decision, as it's going to pay for wheat this year, and I'm not sure how CAIS handles stuff like that

[TOM4CWB]

Rook and Charlie;

Crop Insurance had better look at support levels and premiums close...

If they raise premiums too much there are alternatives!

For INSTANCE;

Rainfall insurance from private insurers like Fimat, may cover negative margins at a reasonable cost with payments much faster than Crop Insurance, If a policy is done July 31st, Fimat I understand writes the Check on August 10th!

It is nice that these other options are open to us.

I do not understand why AFSC cancelled their rainfall insurance program, I was quite satified with it, what happened?