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post #11 of 34 (permalink) Old 01-29-2019, 09:21 AM
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MNP also has a risk calculator you can run numbers through and see how they work together, alone etc, in different situations.

For anyone considering this, I would strongly encourage this process. Other than the cost of the time, it in an independent assessment as MNP is not selling any of the insurance products. I have looked at it twice and no matter what scenario, AgriStability triggers first unless its a individual crop loss then crop insurance would. Once you decline so far, then crop insurance keeps you whole. I am central east Sask, and for what my accountant tells me, they have an extremely low amount of clients where they can honestly say it makes sense.


Premiums are high enough for what you are getting. Highly commissioned sales staff that push very hard to sell the product. Remember its an entire farm gross margin calculation that uses what you actually sell your inventory for the following year.

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post #12 of 34 (permalink) Old 01-31-2019, 12:54 AM
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In our farm we used a comparative program and couldn’t find any way that afsc insurance paid out better than gars. We had a claim year last year and this year our premium did not go up much.

Afsc crop insurance has always been a joke in our area it costs almost the same and in my experience it pays a 1/3 of gars(in our situation with the year we had). I know afsc insurance has way better coverage in different areas. So I believe that it may be better for some people to stick with it over gars just depends.
But definitely not for me.

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post #13 of 34 (permalink) Old 01-31-2019, 01:28 AM
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In our farm we used a comparative program and couldnt find any way that afsc insurance paid out better than gars. We had a claim year last year and this year our premium did not go up much.

Afsc crop insurance has always been a joke in our area it costs almost the same and in my experience it pays a 1/3 of gars(in our situation with the year we had). I know afsc insurance has way better coverage in different areas. So I believe that it may be better for some people to stick with it over gars just depends.
But definitely not for me.
AFSC is the same coverage everywhere, after 5 years it is purely based on your yields, and if you have good history you can work up to the 37% discount on premiums. I cant see how whole farm insurance can ever even come close to matching insurance that covers each crop separately. But to each his own. If I ever took Gars it would be on top of what I can get from AFSC. What kind of margin does GARS offer nowadays? Even at a $200 margin we only would have collected $30-40 an acre this year (our worst year in my 13 year career) so cover 2-3 years of premiums? And not a single other year in that span would have paid, at least with my back of the notepad math. When I first inquired with GARs about 7 years ago they were only offering a $75 margin for the same as we pay AFSC which made me laugh.

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post #14 of 34 (permalink) Old 01-31-2019, 07:27 AM
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Premiums didn’t go up.

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post #15 of 34 (permalink) Old 01-31-2019, 11:06 AM
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AFSC is the same coverage everywhere, after 5 years it is purely based on your yields, and if you have good history you can work up to the 37% discount on premiums. I cant see how whole farm insurance can ever even come close to matching insurance that covers each crop separately. But to each his own. If I ever took Gars it would be on top of what I can get from AFSC. What kind of margin does GARS offer nowadays? Even at a $200 margin we only would have collected $30-40 an acre this year (our worst year in my 13 year career) so cover 2-3 years of premiums? And not a single other year in that span would have paid, at least with my back of the notepad math. When I first inquired with GARs about 7 years ago they were only offering a $75 margin for the same as we pay AFSC which made me laugh.
With gars you can insure 100% or even for a profit if your history shows enough profit. Afsc only let you insure up to 80% so not even close coverage. We can only insure peas to 16 bu an acre because of what happened in the 80s. I cant remember how but your area does matter.
All crops being equal I would lose several 100k more with afsc before triggering a claim. I had a claim where gars paid 1/3 of my budget and afsc was 1/10. The only time afsc is better in my mind is if we had a disaster on wheat and a home run on canola in the same year production wise. Our overall income would be fine so gars wouldnt pay but afsc could kick in on the crop that is poor. Im not concerned about that scenario. Some people are used to/want to claim on individual crops.
As soon as Im losing 1 $ Im in a claim position and afsc does not offer that kind of coverage. I pay more premium but Im also 20% more covered. The scenario above actually happened so Im not guessing or predicting what could happen.

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post #16 of 34 (permalink) Old 01-31-2019, 11:27 AM
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Is there a maximum on the margin that can be insured? How do they determine land costs when you own your land?

I looked at this when it first came out and it did not appear to be a product for a high margin producer. But that was quite awhile ago, perhaps it has changed.

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post #17 of 34 (permalink) Old 01-31-2019, 12:58 PM
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It’s all based on your own financials and your own numbers. This insurance is actually setup to work better for a high margin producer.

Wanted to add, I have nothing to do with this company but was a client for the first time this past year. And not sure i will purchase again or not. I hate crop insurance premiums !
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Last edited by bjtjjl; 01-31-2019 at 01:31 PM.
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post #18 of 34 (permalink) Old 01-31-2019, 05:16 PM
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I’m with Highmarker. AFSC crop insurance is a joke in my area. Very low coverage and unless there’s some miracle 100 percent crop failure your screwed. That being said I’ll still end up taking it
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post #19 of 34 (permalink) Old 01-31-2019, 07:15 PM
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Is there a maximum on the margin that can be insured? How do they determine land costs when you own your land?

I looked at this when it first came out and it did not appear to be a product for a high margin producer. But that was quite awhile ago, perhaps it has changed.
SWMan, neither Gars, crop insurance of AAFC take into account costs of owning/renting land


I cannot comment on AAFC but crop insurance is bushel's guarantee with a quality adjustment. GARS is a gross margin coverage insurance on whole farm. If unsure what gross margin is, you need to do some research. It has nothing to do with land or equipment costs.
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post #20 of 34 (permalink) Old 01-31-2019, 07:19 PM
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AFSC is the same coverage everywhere, after 5 years it is purely based on your yields, and if you have good history you can work up to the 37% discount on premiums. I cant see how whole farm insurance can ever even come close to matching insurance that covers each crop separately. But to each his own. If I ever took Gars it would be on top of what I can get from AFSC. What kind of margin does GARS offer nowadays? Even at a $200 margin we only would have collected $30-40 an acre this year (our worst year in my 13 year career) so cover 2-3 years of premiums? And not a single other year in that span would have paid, at least with my back of the notepad math. When I first inquired with GARs about 7 years ago they were only offering a $75 margin for the same as we pay AFSC which made me laugh.
your premium has a risk area factor built into the cost. I know for a fact that the Peace has about 3 times the premium for the same coverage has we have.

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