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Global Ag risk solutions

19K views 32 replies 20 participants last post by  kauppfarms 
#1 · (Edited)
With the gut job that has taken place with agristability not that it was that great to begin with. i am considering other insurance alternatives for my operation. does any one have any experience with agrisksolutions.ca? I like what I see so far, but just want some other opinions from people who maybe are already enrolled in this type of premiums.
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#2 ·
Believe everybody needs to carry the min crop insurance for flood protection etc....with that you are probably guaranteed $120 to $200 gross income....now calculate your projected inputs for 2013, add your margin you want to protect over and above your few paltry allowed expenses....hmmmm fuel/fert/chem/seed I believe is all.....so finally take those expenses, add your margin guarantee then subtract your crop ins guarantee average and that is your actual protection......

Go back past 10 years and see if you would have ever collected and how much $$$! Add up all years of premium too.....I believe today these are high margin years on planted acres......I don't think planted acres will likely trigger a payout unless grain markets tank...however I will assess the above too because yes agstability is gutted....
 
#3 ·
I will be buying this insurance. On my farm I can get my input costs guaranteed for $6.25/acre inputs + $50 will cost me $8.50. This is level I'm going to buy, it will give me a guaranteed revenue of $175/acre.

Inputs that r included = seed+chem+fert

Premiums are lower across the board from last year

The big thing about this is, if your inputs become higher than you anticipated during the growing season, your coverage goes up, at no additional premium.

Also each farm is measured based on there actual financial results over the past 5 years. Better results = lower premiums.

Disclaimer: I sell this stuff
 
#4 ·
I believe according to the website any ins. Proceeds either hail or crop are not deducted from a potential payout.
 
#6 ·
The beauty part of this insurance is you don't have to go out there and get stuck 18 times seeding into muck if you don't want to. I.E you don't need seeded acres to be covered. I wish I had this insurance back in 2011 when we only got 40% of the crop in. Also, no tapping bins to figure out production and lower coverage levels vs. current commodity prices. Strictly based on accrual revenue.
 
#8 ·
Wow you must have better coverage than us because at 80% I cant even cover costs. I know its not very often that you have a total wreck but there is a chance ever year for that, especially now with the wild swings in weather. Also where is the protection from prices dropping out and yes this will happen again, history says it will.
 
#9 ·
Had a presentation here locally and I thought it looked like a good idea. I ran the numbers on our farm and the only acres we would have received a payout for in the last 5 years was the unseeded acres in 2011. Even though the crop wasn't great in 2010 and 2011, the Gross Income from grain sales was still higher the seed+chem+fert.

Andrew
 
#11 ·
This program makes sense. Have looked at it a few different times - once for myself and once with a new Saskatchewan land owner. Although the theory is good still not quite there yet. Where this program will actually get traction is when input prices are high and grain prices low. otherwise gov't crop insurance still makes more sense. IMO obviously
 
#14 ·
We just found this out the other day when our policy came, if you dont seed all your acres the amount of your input insurance will not be payed on unseed acres. Confused? K let say you seed 5000ac and this year you only get 2500 seeded the other 2500 is not elgibile for the input part of the payment just the $100 extra coverage. So with ours if I seed 2000 ac and not the other 3000 I will only collect $50 margin money on the unseeded instead of $166 that we thought we would, but the other 2000 would be covered and if we didn't make our margins we would collect it there.Clear as mud? We where mis informed about this and if we would have know this we probably would not have got it, but who knows maybe it will work out, not supposed to bank on ins payments!:p Right?
 
#17 ·
Why can't someone just offer me weather insurance? I want a computer model to work of historic weather data, put up a station on my farm, guarantee me a min and max rainfall by time period, and frost free days option. Easy to calculate liability odds from weather data. Fully customizable, insure for any dollar amount I want. Low administration, no measuring bins, no accounting fees. No delays in payments. Let me manage market risk by growing diverse crops and using the hedging tools available. I can manage all risks but the weather. Insurance should never pay for one field that failed or even one crop that didn't turn out. That should be up to the business owner/ farmer to manage.
 
#22 ·
Just so you guys know I did sign up for this insurance and I cut my level of crop insurance to 50% and increased my unseeded acreage indemnity to the max.

My Hail insurance coverage will be cut to next to nothing. In July if crop looks like a winner I will add some then.

For my farm I think it is the right decision. In hindsight it might be a really good decision considering the spring we are having.
 
#30 ·
So in 2013 I signed up seeding went good and all our crop was seeded June it started to rain and in early July when the canola was at the bolting stage we had a bad storm 1000 acres of wheat gone canola 20% gone and severely wind damaged. My first thought was dam wish I had hail insurance which at this time I think I might of had 50 bucks on. But hey I'm covered I have gars. Day after the storm my insurance agent called to give me some agronomist advice. Really go spend 30000 and put fungicide on everything? (See note below regarding Bayer)

In the end I didn't have enough of a loss to get any insurance proceeds because all of myother crops did well enough with the price they were at so income was too high. Ok. So next year I should another year

2014 for us was as wet or wetter than 2011. So again I was glad I stuck with gars Seeded all of our canola acres with the heavy harrow and Valmar and mudded in everything else a while after I finished seeding I get a call from the gars guy. "You should go buy a quad track and harrows and Valmar and seed your canola that's what my clients around Regina are doing". Oh I said is that right. My crop is in thanks for asking. Seriously you **** wad let me do the farming. Anyways in the end the crop was below average but not low enough to be in a claim.

2015 at this point I'm seriously considering not getting gars insurance. In two years my premiums amounted to over 80000 and then the lost income from not having hail ins. So I figure I'm down $300000. But I send in my financial info to get a premium. When i get it I'm shocked. +30%. So I call and ask why here is the answer

Wait for it

" your premiums are going up because you were almost in a claim position two years on a row"


Note on Bayer. I believe gars is or was tied to Bayer's rebate program

For the people that know me personally I could of been a salesmanship for this, that is how positive I was about this program. I really thought it was a good deal.

Oh yeah another thing I wonder how much they pay Kevin harsh to bring up what a great thing gars is a couple times a year in the producer. Or when he I said speaking at a FCC event
 
#23 ·
Had a rep give me a quote gars this last week, got me thinking after we ran some numbers.. There premium seams to be hearty but the coverage is not bad as well

28.33/ac premium for 225fc on top of your input cost

From what I plan to put in my average cost to be in the 130/ ac, on top of the 225 they are offering for a total of 365/ac

I have heard not the best story's about these guys and a few decent story's.. Anyone have exsperence with these guys, or is it just a money grab.. They want there money up front before end of April

I figure even with a 50bu crop of peas at 8 dollars, 50 bu crop of durum at 8 dollars and 40 bu crop of canola at ten dollars there still could be a 50 percent of my premium paid back to me.. Not sure but it seams to food to be true, must be missing something
 
#24 ·
Don't they suggest taking crop insurance at 50% for the unseeded benifit as well? Maybe that's low risk in your area.

We started with MNP cooking the books last year and they have a really good spreadsheet that compares GARS and your crop insurance. GARS made zero sense for us our crop insurance coverage is too good.

Might be worth checking out considering the $$ involved.
 
#28 ·
I looked into a couple years ago ran the numbers. Gov't subsidize insurance is much better if you have decent coverage levels. Problem is they don't pay on individual or spot damage incidents like hail. The totals are added up to provide a whole farm revenue insurance. I can't remember all the details, but it may be on a crop by crop basis, maybe entire farm, but doesn't do individual field coverage. Won't make up for the odd quarter that gets damaged or lost.
 
#32 ·
Talking with another Farmer that took it last night he said he still is pee offed with them from a few years back, he said it turned out to be the driest year they had before and when he sent in his numbers they came back and said his inputs were to low, and with crop prices very high but low bu, it still worked out that he could not get a payment, most coroupt program he ever seen and wished he never took it..

Sounds like a lot more worse than good
 
#33 ·
GARS is clearly a garbage program and I'm surprised it has any legs at all. We got a quote on the first year thinking maybe there was something to it but I then went over the past 5 years of statements and we would have had exactly zero claims. In the meantime I had a lot of claims on hail, reseeding, two shortages on bushels (because of hail) and flood money come in from AFSC. Can't believe there are people who even get paid on it, you'd need a real huge disaster across your entire farm in order to ever get paid. Pretty sure we'd get agristability money before we'd ever get paid on GARS. This is assuming they're still just doing the crop inputs + $50 to $100 margin that they were doing when they did a quote for us. I would consider it if the premium was the same and it was inputs +$175 margin.
 
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