Are there any other operations steering away from crop insurance ? Thoughts ?
I live in Northern North Dakota here in hail country and i would never steer away from crop insurance. The couple thousand dollars i have to pay is well worth it considering we received almost $300,000 last year due to hail and multi-peril. The one year you go without insurance is the one year you would've needed it the most.
If you are totally self financed and accept the risk, why spend the money. It has been my observation that the ones who heavily invest in insurance in my area are the ones who are a little light with the inputs and quick to file a claim.
I have not had any insurance for at least 15years I feel our acres are spread out enough to take the risk. What I used to spend on insurance was a waste of money and very little return for the investment and then to be penalized for making a claim and your APH would change. Since then I bank the premiums and have since self insured my investment. Have had great success with this option, and also have control of my dollars.
If my bank didn't require it (of course they also sell it) I wouldn't have it. In the 10 years since purchasing the farm from my parents I am upside down on premium, including 2 of the worst cropping years our farm has ever seen in that 10 years. And that's not counting the government part of the payment!!
It's a cash cow for banks who require it. Bank I am switching to doesn't sell insurance....also doesn't require it.
I hear what you're saying,we installed pivot irritation on my risk acres I will never forget what my agent said to me. This is really great what you did with the irrigation you pretty much took the risk out of your operation
That summed it up for me no more crop insurance
We use revenue protection insurance. Our banks accept it as collateral. Which is great if you are starting out and don't have the equity built up in equipment or land yet.
We sat down with FBN Insurance in Omaha and came up with different plans that saved us about 60% on your insurance. We are covered for catastrophe loss. I feel the loss of one or two fields is still cheaper then the full coverage we were paying for before. And we didn't change insurance agents. FBN was great to work with.
We have some very innovative solutions at FBN for those who need to control insurance costs.
We farm in north central IL and have a fairly diverse geography and are well capitalized. Thus we self-insure against hail/wind and that has been very profitable for us. However, we are big believers in Federal Revenue Crop Insurance - esp margin protection. The subsidy is what makes it work. Mathematically, at least in our county, this makes the odds of a net payout over time a winner. Anytime I can use someone else’s $ to wager on an outcome where the odds are in my favor, I will bet the maximum every year. This strategy has paid very well on our farm over the past 10 years or so.
My farm is in ND and I went with GARS. It cost me 5 dollars more in premium but I gained 30 dollars of coverage right off the bat. Then the more money I stick into seed fertilizer and chemicals my coverage grows without a premium change. There philosophy is do everything you can to grow the best crop possible and they will be there to cover you if things don't work. Love it. Not beholding to the government rules and regulations.
Been farming for just 5 years, am setting up to collect on three out of the 5. My dad farmed for over 30 collected once, maybe twice. The risk in my county is so great the last few years the premiums are getting out of range. Then this happens on top of being in a severe drought.
Unbelievable hardship you guys are facing down there
I I drove across Highway 30 that week it happened and it was bad,Sorry for what you guys have to put up with this fall.
The derecho across the mid-west, particularly Iowa, about three weeks ago, should be attention-getting. I was on the edge of it and had 15% loss in corn and insurance proceeds will pay my continued premium for about 4 years in the future.