Market facilitation payments program

[Hopalong]

See it described as making the difference between profit and loss for many USA farmers.
For us in Canada, likely will not affect us much, US planting plans were likely made based on other factors.
As a direct type payment if it is continued, biggest effect may be to increase land costs.
Canadian governments are reluctant to increase spending on business risk management programs including crop insurance and agristability.
Suspect they have a point when they say taxpayer money to farmers eventually shows up as higher land prices.

[TASFarms]

Pretty sure that the risk programs are coming in as a net profit for the gov and not as an expense on the tax payer.

[SASKFARMER]

Say with a accountant from MNP on the way to Florida and so I asked him what his thought was for farmers to get a payment from the federal program.

Then we both laughed as he explained if you had good yield and have half the crop off you probably won’t get a dime.

Like crap insurance the winner is the gov.

[bucket]

The MFP lower the market because the farmer was supposed to be made whole by the government....Lower prices were to help increase exports....


Canadian farmers just ended up with lower prices....no top up...

For those that want to go up against the US treasury ...fine but eventually...you....like previous generations will need an adhoc payment...

Its the law of diminishing returns.... its all Ok if you start with a inherited million or two...

[Hopalong]

Have come to think of agristability and crop insurance as insurance rather than government programs meant to raise our incomes through subsidy money.
The programs give us the confidence to spend large amounts of money on crop expenses each year that have resulted in greater production and profitability.
Without the programs in place we would have cut back more on input use in years when prospects were less bright.
Recall early days of crop insurance when the program was widely abused, at least in Saskatchewan.
Was apprehensive when AgriStability was introduced and thought there was too much opportunity for shady stuff.
Give governments credit for amount of policing and checking that has occurred.
Accountant friend told me that program would support long term profitable farms and I believe he was right.

[SASKFARMER]

Both programs work if you have a total wipeout.

Get hailed on entire farm and 1 to 10 bushels if you can combine.

Hail pays right away.

Crop insurance pays as soon as they have a total yield.

Ag stab covers up the rest to a min.

So basically you can survive a total wreck in theory.

[newguy]

And Ag stability works even worse if you have cattle to diversify your farm.I quit a couple years ago.

[sumdumguy]

Correctimondo Newguy. If you have a cow-calf operation, the calves are your crop. The times it would help would be if a devastating disease wiped out your herd. The decrease in inventory might trigger a payment. Mixed farms are somewhat self-insuring, so I’ve been told.

[Oliver88]

Correctimondo Newguy. If you have a cow-calf operation, the calves are your crop. The times it would help would be if a devastating disease wiped out your herd. The decrease in inventory might trigger a payment. Mixed farms are somewhat self-insuring, so I’ve been told.

Private hail insurance works against grain farmers as well.

[bucket]

Private hail insurance works against grain farmers as well.

I thought they were making changes to private insurance....in regards to agristabilty. ....

[Oliver88]

I thought they were making changes to private insurance....in regards to agristabilty. ....

?? I hope hail insurance is removed from calculations, haven’t heard of this yet.

[Richard5]

?? I hope hail insurance is removed from calculations, haven’t heard of this yet.

Just remember that if it is included in claim year that both income and premiums have been included in the past. Typically, you never win on revenue earned verses premiums on hail unless really lucky anyway

Therefore one may be better off self insuring. Have not taken hail ins in almost 15 years

[iceman]

Both programs work if you have a total wipeout.

Get hailed on entire farm and 1 to 10 bushels if you can combine.

Hail pays right away.

Crop insurance pays as soon as they have a total yield.

Ag stab covers up the rest to a min.

So basically you can survive a total wreck in theory.

Has anyone done the math of this new GARS thing with AgStab? The moose jaw people are making it out to be the next best thing since sliced bread. I have my reservations

Iceman

[Oliver88]

Just remember that if it is included in claim year that both income and premiums have been included in the past. Typically, you never win on revenue earned verses premiums on hail unless really lucky anyway

Therefore one may be better off self insuring. Have not taken hail ins in almost 15 years

Richard, Do you know if hail insurance has been removed from the calculations?

(You sound like you have an accounting background.)

[Richard5]

Richard, Do you know if hail insurance has been removed from the calculations?

(You sound like you have an accounting background.)

I would have no idea of any changes. I have spent the time understanding the program only because I have a good accountant and ask lots of questions. I still don't see much benefit in removing hail insurance unless it is simply a one year thing in which you got hailed out on no hail in any other year.

The unknown would then be if hail income is not included your future individual average show much do you loose in the next payment year