Non Equity Farmer

[AlbertaFarmer5]

But how long will crop insurance save anyone. As I understand, it is based on a 5 year average, so 5 disasters in a row has to be driving the base line yield down into unprofitable areas eventually doesn't it?

And is that the intention of crop insurance?

[woodland]

But how long will crop insurance save anyone. As I understand, it is based on a 5 year average, so 5 disasters in a row has to be driving the base line yield down into unprofitable areas eventually doesn't it?

And is that the intention of crop insurance?

I believe it’s 15 years of records that they use but I’m far from certain on that. I guess eventually if you constantly claim then your coverage would drop which it should. I know that we had claims from quality downgrades (green canola) but they use your gross bushels for calculating your average which is a nice bonus. Last year we were way above our average on barley which was our only crop and that was nice. If we were trying to “work” crop insurance everything would be canola since the coverage is way better. However we just wanted barley since it’s cheaper to put in and earlier to come off. We wouldn’t have finished otherwise (priceless in my mind) and are doing the same this year.

I believe if there was no crop insurance there wouldn’t be the rush to rip up grass around here. Simple economics of 50bu of $10 canola X 80% = $400 coverage vs $45/ac coverage for pasture. Nobody ever called at midnight in the pouring rain to say my barley was running away either. The joys of livestock.

Fertilizer guy stopped by today and mentioned there’s a few more auctions than normal coming up around here. Maybe Ma Nature is kicking more guys to the curb yet. I love my cows and old rusty shrapnel.

[ajl]

1200 acres of land for rent just came up in this area for $40 per acre if anyone wants to join this guy fighting the swamp. On Kijiji in the farm equipment section. If we don't get some warm weather this year, this land will revert back to muskeg.