The Combine Forum banner

1 - 20 of 40 Posts

·
Registered
Joined
·
2,276 Posts
Discussion Starter #1
For the past decade I have had mostly crop insurance and very little hail insurance. Got 3 storms that had measurable hail claims. I held crop insurance mostly for the flooding back 4 or 5 years ago, we had wet springs and then often would get fields seeded and then get 3 inches of rain. Most of my claims have been for unseeded acres rather than crop losses. The yield coverage is so much lower than even an average crop.

We seem to have a handle on the wet land now with a couple dry summers and seeding more deep rooted crops that can use the moisture like canola or durum and canola when it gets flooded in low spots comes back. I am really debating whether to stay in the program at all and instead supplement with more spot hail and protect against the disaster.

Interested in any opinions on this?
 

·
Premium Member
Joined
·
4,302 Posts
My area is high risk for hail and we continue to get more and more hail, would have hit the lottery if I had loaded up $500/ac hail insurance. I am going to keep some production insurance for the total disasters but I will reduce it this year and up my hail insurance.
 

·
Registered
Joined
·
231 Posts
I have pretty decent crop insurance coverage. I try and seed my individual crops in blocks so that if I get enough hail then crop ins will kick in. Seeding each crop in a block also makes logistics easier through the season. If each crop was spread out across my land base it would hedge production risk but also make it difficult to trigger a SCIC claim as the good would offset the bad. I’m definitly not farming for insurance, but with this setup it helps enable claims if we have a more localized loss. Last yr was first time I didn’t purchase hail insurance. I don’t plan to buy any this year unless things look really good late June.
 

·
Registered
Joined
·
1,144 Posts
I’m state side. Last 2 years have had hail claim and production claim. Maybe 5 out of the last 8 have had some claim. Wouldn’t go without coverage in both.
 

·
Registered
Joined
·
1,144 Posts
I’m state side. Last 2 years have had hail claim and production claim. Maybe 5 out of the last 8 have had some claim. Wouldn’t go without coverage in both.
 

·
Registered
Joined
·
1,145 Posts
I'd rather sell my crop to the elevator than crop or hail insurance. I try to block crops together as well. I carry some of both but wasn't lucky enough to get hail last year. Many more of those and I'll be looking for another line of work.
 

·
Registered
Joined
·
880 Posts
If your not in a hail zone it won't break the bank to have it most of the time,
if your coverage on crop insurance sucks than it might not be completely worth it, we have had quite a few disasters followed by extreem good years so we do ok with crop insurance, for us it takes the financial pinch of a bad year.
 

·
Registered
Joined
·
3,938 Posts
So how is your crop insurance 10 year average less than average? That number can be a bit sobering.

I mean if 80% of an average crop don’t cover the bills there’s a real problem.
 

·
Registered
Joined
·
622 Posts
So how is your crop insurance 10 year average less than average? That number can be a bit sobering.

I mean if 80% of an average crop don’t cover the bills there’s a real problem.
If your breaking even at 80% of a average crop your doing a lot better then the average farmer or are you talking 80% should cover the crop expenses and the fixed costs of the farm is over and above that?
 

·
Registered
Joined
·
3,470 Posts
If I had to pick between the two, I would take hail insurance any day over crop insurance, mind you we have MASC so you guys out west are probably better off. I find hail can be more devastating, entire fields wiped out in minutes, when the day before you were looking at a bumper crop. I find you usually can tell part way through the season when your crop is going for $hit and can adjust your spending somewhat, put off purchases for example. With no hail insurance and only crop insurance, hail could wipe out half your farm and you would likely still not get a payout, unless the crop was poor before it hailed. I only carry crop insurance because my bank makes me, I carry hail insurance because it gives me peace of mind.
 

·
Registered
Joined
·
843 Posts
So how is your crop insurance 10 year average less than average? That number can be a bit sobering.

I mean if 80% of an average crop don’t cover the bills there’s a real problem.
The 80% does not work when starting to grow new crops cause then you are stuck with area average for close to 5 years.

The township area averages on almost all crops is extremely low.

Don't get me started on the prices. AFSC spring prices just came out, they look like prices from the 1990's.
 

·
Registered
Joined
·
3,938 Posts
If your breaking even at 80% of a average crop your doing a lot better then the average farmer or are you talking 80% should cover the crop expenses and the fixed costs of the farm is over and above that?
80% of my 10 year crop insurance average cover's my variable and fixed expenses all in. If 80% of an average crop only cover's variable cost's call RB RIGHT NOW!




The 80% does not work when starting to grow new crops cause then you are stuck with area average for close to 5 years.

The township area averages on almost all crops is extremely low.

Don't get me started on the prices. AFSC spring prices just came out, they look like prices from the 1990's.


Sure that's true but who seed's the whole farm to a new crop? It's not unreasonable to expect it to take some time to prove the crop to insurance and to expect some greater risk.

Just checked my coverage with SCIC and every single commodity the coverage is actually higher than last year. By the most part a really bad year just dropped off.
 

·
Premium Member
Joined
·
8,054 Posts
Problem is that who is growing the same yield they were ten years ago? And who goes to the field and sets the rates to grow an "average" crop? Being "average" doesn't cut it anymore and that's the problem with crop insurance, at least where I am from.:wink:
 

·
Registered
Joined
·
569 Posts
We just have whole farm insurance it goes off of past profits so hail hurricane wet year it doesn't matter if we dont make much or loose money we get paid
 

·
Registered
Joined
·
2,276 Posts
Discussion Starter #18 (Edited)
80% of my 10 year crop insurance average cover's my variable and fixed expenses all in. If 80% of an average crop only cover's variable cost's call RB RIGHT NOW!

Not that simple. On smaller acreage like I have which I have owned for 10-15 yrs or so in an area my family never farmed before, it has taken time to learn how to grow bigger crops. My yields didn't jump overnight. I had to measure risk with reward so there was no going for it to drive up yields quickly. So sure we are growing 50 bu crops now for the past 3 or 4 yrs with more confidence, but 5 or 6 yrs ago, we weren't. Canola (which was new for us) was more in the 30-35 range, wheat 35 or 40. Add in some years with flooded land out of production and averages are lower than they should be.

Certainly doesn't seem to be a choice of calling RB or not.
 

·
Registered
Joined
·
3,938 Posts
Ok that paints a different picture than where I'm coming from. None the less if your yields are increasing so is your risk exposure and in my opinion the need for insurance. Unless you can self insure and have the equity to burn in the case of a large loss there sure isn't much comfort factor.

Still I don't know what you call an average crop now but there has to be a reasonable expectation of a profit on an average year or why even turn the wheels.
 

·
Registered
Joined
·
848 Posts
We had lots of hail this last year. Hail insurance paid out more than crop insurance. Crop insurance didn’t even cover 1/2 the premium. Crop insurance is way behind the times. They have my yield for durum at 42 bushels/acre. This last crop was my first year this decade under 55 bushels/acre.
 
1 - 20 of 40 Posts
Top