Market facilitation payments program

[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

[Richard5]

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

I am not a mixed farm but when people describe exactly what you are saying I can't help but think with a mixed farm if one side fails and the other is profitable then you are in a better position because of being diversified.

My best example I can think of is buying 2 lottery tickets. One wins and we want insurance to compensate us when the other doesn't.

One's individual margin should be reflect both enterprises and be in a better position assuming both industries have been profitable

[Crestliner]

Bank every year what you would pay crop insurance premiums and in 10 years you will be surprised how you can insure yourself. How many farms ever have a total wipe out? I have been farming 30 crops and had 3 wipe outs....1989 drought, 2002 drought, 2010 drowned out. In 30 years have saved $2,000,000 million in premiums. If your are disciplined and diligently save the premium every year you can take care of yourself.

A young farmer just getting going....yep crop insurance is a good backstop because you may need the help as no saving no equity etc. But save and Bank the premium each year and like I said you will be insuring yourself before you know it.

There is nothing wrong with SCIC or GARS if you can afford it and makes sense for your operation.

[blackpowder]

On the other hand.
Over a similar number of years.
My payouts equal what I've paid in premium. Bushel loss, hail, price, wildlife, grade loss etc.
I agree if you can do it, self insure.
Gars etc will be gone.
Trick is, I guess, is to get to the point you have a years worth of inputs saved up in cash.
It's a breakeven, but in any one of those years could you have withstood a bad loss. In the first 10?