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post #31 of 34 (permalink) Old 02-01-2019, 02:43 PM
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Agristability still doesn't work because they include any crop insurance payouts towards your reference margin. So its almost impossible for agristabiliy to trigger even in the worst year. I was in a AFSC focus group last spring and not one producer who was in Agristability and all risk insurance collected Agrisability from our 2016/17 crop fiasco. If it can't work then when will it?


AgriStability with always be the first to day when you have a cross spectrum decline in production and quality. I look at it this way. If you grow your crop insurance guaranteed bushels, a previous high margin producer would have a substantial drop in their gross margin or loss. You don't get any extra crop insurance if input costs rose during the year and prices dropped in the crops you grew.


In this case, AgriStability can cover some of this loss. Its individual coverage (like any insurance program) so just because someone else does, doesn't mean you will.

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post #32 of 34 (permalink) Old 02-01-2019, 02:43 PM
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Got out of Agistabilty years ago. Waste of time and money. IMO


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post #33 of 34 (permalink) Old 02-01-2019, 03:01 PM
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Agristability as I understand it will only payout on a complete disaster of a year. Like close to zero income, that's what we use it for along with crop insurance to protect from that complete disaster.
This all depends on your personal reference margin, someone with a large reference margin could be nowhere near a loss and still trigger a payment. In 2013ish they capped it to the lower of your historical reference margin OR your average allowable expenses. That's when I bailed on the program because my allowable expenses were pretty small compared to my reference margin. I thought I heard that things had changed recently but can't find that on gov't website at the moment, boy those gov't websites sure are confusing...

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post #34 of 34 (permalink) Old 02-01-2019, 07:43 PM
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AgriStability with always be the first to day when you have a cross spectrum decline in production and quality. I look at it this way. If you grow your crop insurance guaranteed bushels, a previous high margin producer would have a substantial drop in their gross margin or loss. You don't get any extra crop insurance if input costs rose during the year and prices dropped in the crops you grew.


In this case, AgriStability can cover some of this loss. Its individual coverage (like any insurance program) so just because someone else does, doesn't mean you will.
But you assume that everyone only grows one or two crops and only crop farms. When you have a mixed farm the margins are almost always offset by another area of the operation. Plus when you string bad years in row your margin is then on a fairly steady trajectory down. Agristability can only work if and I mean if you are not a mixed farm, have no all risk crop insurance and have had at least 5 or 6 good years before to build your reference up and then have the bottom fall out.
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