Devils Advocate out of my depth most likely

[malleefarmer]

Hyper inflated land prices that shut out our own young farmers....REAL farmers....agvocate THAT!!!!!

One of the issues i see is your insurance schemes and in us same schemes plus subsidies.

Here in Aust massive push for multi peril crop insurance with govt intervention/help paying premiums.

To help farmers in low rainfall higher risk areas to stabalize incomes etc.
These farmers wish to grow lentils etc in areas were they shouldnt be grown and and fail 2 years out of 3.

So the scheme gets implemented isnt the first thing that happens is land prices rise artificially for want of a better word all on the back of guaranteed returns?

Ive been a advocate against it and admit i dont fully understand it, but some how i got a email and a phone call from a Canadian actually think his last name may have been colson??? He was studying aussie situation and was gonna try a product here. This is maybe 2 or 3 years ago.

Other thing leads to over production meaning farmers dont heed pricing signals or agronomic signals.


Im ready for it shoot me down dumbarse aussie .....down under on the globe down under on intelligence

[farmaholic]

With all due respect mallee....I really don't think our crop insurance or BMR(business risk management) programs are that lucrative. They are supposed to be insurance, not "profitable".

Is this auction over and if it is what happened?

http://www.eldersrealestate.com.au/rural/buy/property-cropping-sa-karoonda-707777

[malleefarmer]

Yeah said i was out of my depth farma but here in aust they want it be the saviour of low rainfall high risk farming areas, i disagree with the principle.

Yep the farm made $400 per acre owner wants more so presume discussions followed. As i said it was in a state of decay except homestead

[GDR]

With all due respect mallee....I really don't think our crop insurance or BMR(business risk management) programs are that lucrative. They are supposed to be insurance, not "profitable".

Farma, have to disagree with you a bit here. AgriInvest is free money, Agristability sucks and we are not in it anymore but I know a few guys that are not diversified that have got some good dollars out of it. Insurance may be different in Saskatchewan but last year was the first year in probably 10 that I didn't get more back than my premiums (all hail related).

Bottom line is if the money is there I'm gonna take it, but if it wasn't there farmers would not take on the amount of risk they have done including high rents and land prices.

You are right it's supposed to be insurance not farm support but I think its a bit if a grey area.

[Retired]

GDR you are 100% correct there is as much money made from ins as production,all kinds of ways to collect plus as you say the risk factor is greatly reduced. BTOs couldnt survive without it.

[farmaholic]

GDR, agree with the AgInvest "freebee"....but in reality it is kinda chump-change in the grand scheme of things.

Hail isn't a yearly event in one of the townships I farm in, and it was more common in the north end of the other one I have land in. The rates were always reasonable in one and have come down in the other.....my premiums are a donation to the pool for those who need to collect.....not brave enough to not cover my ass for hail though.

Crop insurance on the other hand.....I'm bare assed!!! Did an analysis this winter. It doesn't look good for us....big premiums and crappy guarantees. Over the last ten years seldom did we grow less than the area average, let alone 80,70,60 or 50% and no premium discount, ouch at 80%.. Maybe 3 times, 2 crop types(durum and canola) in the last ten years we "maybe" would have collected.

And then there's the useless "Ag Stab Me In The Back" "pogrom".

*enter wiseguy, lol*

[farmaholic]

Retired, maybe some people are more successful farming the programs than the land. Some of it is likely a shell game of abuse of the programs. Only one "entity", makes up, or is on this farm!

[Retired]

Farma I didnt say all abuse programs but there are sure a lot that do and with numbers you can do a lot.

[farmaholic]

I wonder what some farmers tell the crop insurance agents when everyone else in the area grew a crop except them(again and again), or just about every year one of the three entities that is farmed together(but "seperate") is in some sort of a claim position.

[helmsdale]

The only way AFSC crop insurance can make sense for me is if they choose to be santa clause as they have in the past. Some guys made more money in the poor years by wrapping up the crop with no cost to insurance payout, when AFSC was writing off 15+ bu/ac crops from road. When you can swing 2.5T of green feed an acre at $100/T and get full crop insurance payout, it's a payer.

[ajl]

The main culprit inflating land was non stop central bank money printing. Crop insurance role is minor. Interest rates got a lot lower here than in Australia, so that is why land is a lot higher. There is no way that rates would have gotten as low as they did with the amount of debt out there in a free market environment. This government sponsored cheap debt extravaganza has hurt the structure of the industry tremendously and done real damage to many who should have been in the ag industry in Canada.

[farmaholic]

Captain Obvious comment: "everything I do to try and reduce my premium diminishes my chance of collecting a benefit"...... self defeating.

I know guys in crop insurance who don't even insure their whole crop to save money on the premium.

Why bother?

[malleefarmer]

We insure for fire, some do fire and hail.

My dad never insured his theory which was probably flawed, when i started doing it, "so son your betting your gonna have a fire or hail event, insurance companies are betting you dont house always wins" not sure if he was right or wrong.

We are a high risk hail area.

So with all the above posts am i half right?

Multi peril crop insurance here what farmers want is insurance against price falls and yield falls "income protection" if you like and the way i see it unless you have almost total wipeout they dont pay.

High rainfall guys wont have a bar of it as they reckon there subsidizing the low rainfall guys, its a tequila bottle full of worms or if you dont drink a can of worms

[the big wheel]

who is crop insurance a subsidy to?
Sask party government took out 1 plus billion out of the program to make their provincial brokenness plan look better.

Afcs writes off 15 bushel crops from road? In sask you cAnt get a 5 bushel
Crop wrote off even after a guy spends half a day counting plants that aren't there beyond stupid. But I guess to some genius it pays to
Spend money on adjusters hours to screw people out of coverage. In some areas where there was no rain over 3 or
4 years now there is no coverage and on top of it they have to be ***** and turn over rocks to find crop count to not pay out.

But hey more farmers that go broke better for walls friends in the land business all the capital gang........ag capital input capital? Iceman investor capital. Hahahaha

[SASKFARMER3]

Our systems aren't winners by any means they give you just enough rope that you dont hang your self and put a crop in again next year.

You dont make money on crop insurance or the useless AG stability or what ever else they change the name to.

Private insurance is showing its true colours this year with lots not getting much.

Insurance is insurance.

But funny topic had a conversation with a few bankers i know and all said none of my kids could walk in and purchase our farm and hope to make a go of it even if they would borrow the money to them.

I knew this but its interesting coming from Bankers.

Ah Imput capital will help it happen.


HAHAHAHAH