Cost of Crop Insurance

[makar]

To clarify my 50 bushel crop took my 40 bushel area average to 85% of 40.

[Klause]

To clarify my 50 bushel crop took my 40 bushel area average to 85% of 40.

You're right! That's retarded.


The way it "should" work is the last five year average should be used as the base coverage, and the adjust the producer off of that... However, that would increase coverage way too much and make the program, though effective, too expensive.

[makar]

Now in alberta it seems to work better. Took years for me though.

[tweety]

So what do you want Klause?

If the government stopped paying 2/3 of the premium, would you still take crop ins?

[makar]

I think klause wants what i did twenty years ago, honest insurance based on real yields, why are you chipmunking.

[tweety]

I think klause wants what i did twenty years ago, honest insurance based on real yields, why are you chipmunking.

There shouldn't even be insurance - especially with the huge government subsidy - and only costly private if you wanted it. It would be the best risk management strategy ever to hit agriculture.

This guaranteed income crap just makes the herd weak.

[malleefarmer]

We had a company run a series of insurance seminars exact same set up but our govt doesn't pay a razoo all funded by farmers.

Depending on coverage could amount to 10% of your cropping costs.

Another stumbling block was a $10,000 one of audit fee of your finances and farm business and yields, going back 5 years.If figures stacked up they would insure you.

[farmaholic]

We aren't in GARS or Crop Insurance. A neighbor said I should join and build my own average by just insuring one small acreage crop each year....because the reports you would send in would have the results of all crops you grow every year. That really isn't insuring against a major loss but only establishing your own averages and premium discount if there's no claims. Depending on how they start increasing your own averages against area's. ...by the examples posted here it may take too long. Unless they would allow us to build our own averages using very accurate Ag-Stability inventory reporting numbers.

I am embarrassed to admit we are still in Ag-Stab. Its useless but better than nothing although not by much! Hopping in and out would be a pain in the ass having to submit unreported numbers of previous years when you wanted back in. Also, in case there was ever anything ad-hoc(wishful thinking these days) all the info would be on file. Although numbers need to be submitted for AgInvest anyway. Premium is a small fraction of what our Crop Ins premium would be so its not like I'm spending a pile. Strong financials enables us to more or less self insure. ...although I understand lending institutions don't make that an option for everyone....they want you to cover their ass in their investment in you--makes sense.

Insurance isn't supposed to be "profitable".....for the insured!

[farmaholic]

I guess its risk management. ....so I guess I never had to manage that much risk over the years that I felt the need or was forced to take Crop Ins. But we did increase the farm size by three times and bought iron over the years using borrowed money. Wasn't operating on the edge of a cliff I guess!

I think its time to move closer to the edge again....but should it be on or off farm?

[farming101]

Sure Tweety sure

Do everything right and the hail storm will go somewhere else. Oh boy

1.278 billion is due the SCIC from the GRF