01-28-2014 11:11 AM
01-28-2014 11:22 AM
Not sure about this waterfall you talk about. I have been farming 30 years and have never collected enough crop insurance to cover my premium. I think the real gravy train is for the insurance company's themselves. I have read the government's goal is they have a 17% return on there investment. With all the premium subsidy THEY have collected over the years on my policy I would say 17% sounds a little low.
01-28-2014 11:32 AM
01-28-2014 11:33 AM
Subsudies will continue to flow to farmers like a waterfall! The emphasis will be more on subsidized insurance! Meaning a government backstop on revenue will be greater and cash rents by the big boys will squeeze.margins to nothing except for the best of years because so little will be at risk and it can be penciled in beforehand!!! Mark my words. This will become a slow rolling disaster.
The House dawdled but the original truth prevailed. Rural America was well taken care of by their representatives and red states will continue to take in more than they pay. As always has been true. Cotton, rice and sugar will be especially guarded.
SNAP (which was already cut last year) will be used as the whipping boy to divert attention from the continued welfare to farmers.
And Congress proves again what I've always said. Your representative's job is to bring home your bacon and blame it on someone else, as if they intended otherwise.
Big FAIL for Congress for not cutting ANYTHING in a meaningful way. There will be no meaningful structural reforms in the future unless one side or the other can gore the other's ox - but never at the cost of their own.
Should be a HARD cap of $10,000 or less for any kind of subsidy for the first 10 years of any farmer's career. From then on no subsidy of any kind. All it does is subsidies the BTO against a young feller trying to get into the business. If any BTO wants to insure his risk he can do so on his own dime. If it is not worth it to him neither is it worth it to the rest of society. Let the water seek it's own level without artificial dams or valleys being constructed by the federal government.
01-28-2014 11:40 AM
Oh I have collected non subsidized hail insurance. My point is multi peril or RA like we call it now is not as great as it is made out to be. I have lower APH's due to many years of history and with today's hybrids they can make those yields with a pretty lousy crop year.
01-28-2014 01:32 PM
01-28-2014 02:14 PM
Shaggy, this year for instance I received almost $70,000 in hail insurance claims because they are figured on a per section basis were as enterprise RA is figured on all your acres. On my RA I received nothing. Now I am not complaining about my coverage I am just saying the risk on these policies is pretty low for the amount of subsidy these chosen few companies are receiving.