A new Crop Insurance plan

[dfarms11]

What does everyone think of this plan?

Have crop ins cover these costs

1-fertilizer at max levels set at either your personal indexed yield OR the area avg yield whichever is HIGHER. The amt of fert needed at any given yield is a mathematical fact therfore you should know how much crop ins would cover for this input, before you put it into the ground

2-chemicals

3-cost of seed at recommended rates.

4-a cost for land, This one has to be here somehow but I havn't figured out at what level since land prices are way overinflated. Therefore I AM thinking at a lower level, unless it could be adjusted somehow by yield potential


5- avg custom rates for seeding, 2 passes spraying, swathing and combining.

6-cost of ins premium

Using this system as a basis to overhaul crop ins. could it be done? Or am I just dreaming? If I could have a crop ins policy like this, I would know before seeding that I may not make a lot of money but I would never lose money, if I didn't go overboard on fert or land rents.

Right now with inputs alone at $130 plus per acre plus costs of machinery, crop ins does nothing for me at $100 coverage levels, and cais is beyond useless because it is just a guessing game 2 years later. We need to have something that we can predict our future with, Not wait for after the fact!

[dfarms11]

One more thing, Now I am really dreaming but bring back NISA also.

[cowman]

I believe LLoyds of London will insure just about anything you desire, however you desire it done? Of course the premium might be a little steep?
Or were you talking about crop insurance like we have now where the government bankrolls it and makes up any shortfall?
Hey business is business and if you want to be in it you take some risks? If you want a guaranteed profit you should go to work for the government and get a weekly check.

[charliep]

Just a comment that this is a big jump for provincial crop insurance organizations to move from thinking about replacement income (yield coverage times a forecast market price) to the concept of ensuring a portion of cash expenses.

If you are in Alberta, the revenue insurance program is meant to satisfy some of these needs. I realize you have to subscribe to spring price endorsement but the concept is to provide a floor revenue.

[dfarms11]

you know cowman, I'm just trying to figure out a program that works. right now crop ins does not! cais doesnot! I believe these were your words in rural issues that the conservatives need to come out with a new program that works. Well I am just trying to think of one that does work. I didn't ask you to talk down at me for wanting to be a welfare farmer, as that is the last thing I want. Farming was decent for me in the 90's. Cant say that since01!

I'm just trying to get something started that we ALL have been asking for. If we as farmers dont come up with something on our own, we sure wont get what we want by a govt made program!

[lohner]

With all due respect to all participants and all contexts.
I am from an area where my coverages do reflect my costs a little. (Of course if term payments and rent per acre are not higher than ability to pay. which they are this year.) And ONLY because of revenue ins. components.
My purchase decisions make me look at C.I. as "income insurance" not "crop" insurance.
Therefore my indexes are good, and I insure the highest level. SPE wildcard risk/rewards are studied.
And as someone who still has a budget deficit after this crop I want to say I've been to input advisory meetings and had conferences with the designers,PLEASE be careful what you ask for, you might get it.
I understand other risk areas and provinces have legitimate problems. However, its like making a matchstick tower. One "little" change now and big unforseen problem later.
A laymans observation on CAIS.
Meetings I've been to, the participants seem to fall proportionately under some age and income and industry and management style demographics.
Also, some similar complaints within each group. Has anyone else noticed this?

[cowman]

Well hopefully the Conservatives will come up with a plan that does work...and won't be countervailable? There is a model in place? Its called the American farm bill?
The federal governments contention that we can't afford it is in reality a joke. Billions wasted in every department could be redirected into levelling the playing field for all business...including agriculture?
Why just scrapping the gun registry would free up some major dollars and the gun registry is just one tiny section of government!

[lohner]

I'm probably wrong but, at one time our SPE RIC values seemed to resemble LDP's. If so, I doubt it's a coincidence.