Crop insurance

[Guest]

whats everyone doing ?
dropping our coverage from 80 -70%will knock 10% off our $ guarantee but save us 38% off our premium
looks like we gotta go to 70%?
deadline end of day tomorrow

[Sheepwheat]

Leaving it at 80%,

adding forage maybe, but my supposed hay coverage would be far less than I produced even last year.

Maybe insure hay against hail?

[blackpowder]

The last time I tried to save money on CI, it cost me a payout of $7 for every dollar I saved.
If you can't afford the big hit, pay the little one every year. Just me.

[iceman]

What’s actually going on with Just solutions and Gars? Anyone know the actual story?

Iceman out

[Landdownunder]

Really get lost with insurance that you guys talk. Fire or hail here. Nothing else sink or swim.you have a crap drought year drink cement and harden the fook up you have three in a row tough titties.

Guess Australia borders on uninsurable.

Common thought here multi peril insurance pushes value of land up.

Been tried twice. Gars I think tried maybe 10 12 years ago massive pay outs never seen again.

[Sodbuster]

80% across the board, with inputs this high we will need the extra coverage and after last year don’t want to take a chance on another drought year.

[sawfly1]

Drought ain't over yet at least here it's not
Old guy said with all this wind this spring , it will be drier than last year.
Not that he has been right a lot.
My theory is that the south east has been wetter, most of the winter,catching 3 times the storms we have. But storms will all come thru here may and June.
So nothing to worry about , but I am still taking 80% .

[Guest]

We bumped from 70% CAP to 80% CAP. Coverage is pretty good yet (non-inclusion of 2021) and discount still 50%. Just inputs basically are double, conditions lean towards dry and not confident about rain prospect. Price choice with CAP is just base, premium will be about $9./ac and coverage avg about $450./ac

[Grahamp]

We bumped from 70% CAP to 80% CAP. Coverage is pretty good yet (non-inclusion of 2021) and discount still 50%. Just inputs basically are double, conditions lean towards dry and not confident about rain prospect. Price choice with CAP is just base, premium will be about $9./ac and coverage avg about $450./ac

We’re using Cap for the first time this year as well, 70% premium gets us 80% coverage. Saves us a ton on the premium without giving up much on the coverage. The canola savings are over $10 an acre.

[Guest]

Cap ? What’s that?

[Grahamp]

Cap ? What’s that?

https://www.scic.ca/crop-insurance/crop-averaging-program

Stands for crop averaging program. You lose individual crop coverage, but gain total dollar coverage roughly 10%-12% higher for the same premium. So if you select 80% you would pay your 80% premium rate but would have coverage of 90%. But your claim is calculated by the total bushels grown in all crops.

So to give a for instance let’s assume you have individual coverage of 40 for canola and 50 for wheat. Your 80% conventional coverage covers you for 32 canola and 40 wheat. Under the CAP program for the same premium you would be covered for 36 canola and 45 wheat with the base price of 17 and 8.69. So if you grew a 34 bpa canola you would be eligible for a $34 dollar payment but every bushel of wheat you grew over 45 would claw this payment back at 8.69 per bushel. So if you grew a 49 wheat you would get nothing.

The sweet spot for us is the 70% percent level. The premium jump between 70 and 80 is almost double and 70% conventional is just not quite enough. Getting 80% coverage for 70% premium makes a big enough difference for us to give up the individual crop coverage.

[woodland]

We run at 80% with no hail. Looks to be a repeat of last years drought so we’re gonna stay there regardless of the cost. The wind has sucked all the moisture out here. Another fun year ahead.

I wish we could get our cattle price insurance to be cost competitive like crop insurance. The government is incentivizing the conversion of grass to canola.

Mallee………
You’re completely right that our insurance inflates our land prices. It sure takes away some of the stress of this wacky calling that we do though. If it disappeared we’d get tough or die………

Great topic 🍀

[Oliver88]

Droughts not over, sticking with 80%.

Only choice to make is whether to use “In Crop Pricing” or not.

[ajl]

Sticking with 80% no hail here as well. AFSC kept the price of wheat quite low at 8.98 for high protien HRSW. I have sold a tiny bit of #2HRSW 13.5% @ 13 for Oct already. In Alberta Variable price benefit is standard which helped around here last year. Them choosing a low initial price helps keep the premium low but the payout if we stay dry could rise quite a bit above their projection.

[fjlip]

Upping FLOOD damage also here, frost be major concern too.