Spring price endorsement AFSC

[Ronski]

Does sask crop insurance have SPE coverage?
Anybody signing up this year? I usually dont take spe but did this year to limit downside with the china turmoil.

[poorboy]

The spring price endorsement used to be a pretty decent program. It is very mediocre right now. It doesn't pay out until the fall price drops below 90% and then only pays up to the 90% level. In previous years, most of the payouts would trigger at like 85% level and then pay you from 85 to 100%. Now you will paid only from 85% to 90%.

In canola you can buy put options for much cheaper and still have the potential to sell them.

For example the AB SPE price for canola is $470/t. That is basis the PDQ average website quote for Northern Alberta for the month of Oct. So the SPE needs to be 90% of $470/t, which is $423/t net. Adding in $25/tonne basis I need a $448/t put on the November futures to do the same thing. Today the Nov $450 puts seem to be trading for $4.50/t. The AFSC cost for the same coverage in a SPE is about $9.80/t.

If you don't have a brokerage account, some of the grain companies such as Cargill will incorporate puts into their contracts.

There is no real good way to protect your barley, oats, peas, lentil prices in the futures market. Could do a corn contract to offset some of the barley risk.

[GDR]

Does sask crop insurance have SPE coverage?
Anybody signing up this year? I usually dont take spe but did this year to limit downside with the china turmoil.

I had the same thought. Are you just thinking canola or everything?