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Senior Contributor

CROP INSURANCE- 80% LEVEL TO MAX OUT THE TAXPAYERS MONEY.

Are you finding that the 80% level for crop insurance is the sweet spot to max the taxpayers contribution to paying for your crop insurance? In Iowa, it appears that the 80% level is the best level to take advantage of the taxpayers money. Just curious if other guys are seeing this too as you decide on your crop insuranc. Just for my small operation, the taxpayer will contribute over $75.000 to help me pay this variable production cost. Any opinions if you too are seeing this 80% level as the sweet spot. Thanks for your opinion..

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Advisor

Re: CROP INSURANCE- 80% LEVEL TO MAX OUT THE TAXPAYERS MONEY.

Thank God we have the good sense to offer welfare to Real Americans.

 

And Real American Corporations, which are people too.

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Senior Advisor

Re: CROP INSURANCE- 80% LEVEL TO MAX OUT THE TAXPAYERS MONEY.

NOX  - point  well  taken ---   

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Senior Contributor

Re: CROP INSURANCE- 80% LEVEL TO MAX OUT THE TAXPAYERS MONEY.

Interesting, if you consider Crop Insurance Subsidies as being in the same classification as Food Stamps and the other payments that some people get from the goverment, I would say you are wrong. Just in Iowa, over 99% of all farmers take out crop insurance and recieve a Goverment payment of roughly $45,000 per 1,000 acres of corn that they farm. Getting the $45,000 per  year in crop insurance subsiidies is just the Goverments way to insure that all farmers have a Revenue based protection Program to cover lost revenue due to a variety of ways that a farmer can have happene and reult in revenue losses.

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Senior Advisor

Re: CROP INSURANCE- 80% LEVEL TO MAX OUT THE TAXPAYERS MONEY.

If someone else gets the  $$$  it's  welfare  - If  I get it that is good business practice --- 

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Senior Contributor

Re: CROP INSURANCE- 80% LEVEL TO MAX OUT THE TAXPAYERS MONEY.

Well, it's just a fact that American Farmers recieve some sort of revenue protection from the goverment and subsidized Crop Insurance is part of the deal. Also, this goverment payment is very small for crop insurance. It amounts to only around 21 cents per bushel of corn. So since it takes around $750/acre to produce and grow corn (This figure includes a $400/acre cash rent price since ,many farmers don't own all there land and have to cash rent some of there land). In the big picture this 21 cent per bushel of corn   The Crop Insurance subsidy is really only peanuts in the whole big picture of producing corn. Unless of course you consider this 21 cents per bushel of corn a big amount. However, for miy farm operation, 21 cents per bushel of corn is very, very, small in the entire Cost of Production for corn.

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Advisor

Re: CROP INSURANCE- 80% LEVEL TO MAX OUT THE TAXPAYERS MONEY.

The grain will get grown.

 

If there are a few million very marginal acres that go out of production because the owner can't pay for the insurance, no big deal and a bit price positive. If the market needs those acres it can bid them back in, if there isn't a price that will bid them back in then they're not worth farming.

 

So in the end, the $billions just buy a few million acres and otherwise get capitalized into rents and land values.

 

 

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Senior Contributor

Re: CROP INSURANCE- 80% LEVEL TO MAX OUT THE TAXPAYERS MONEY.

I haven't studied it enough to say for sure but I would guess it's the same old story around here. rates are set based on the river bottom farmers who have a claim ever thee years. Therfore making any level of insurance unaffordable for those of us that might have a claim every ten years or so. If my ground floods it's not an issue. Crop insurance would be pretty far down the list of problems.
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Senior Contributor

Re: CROP INSURANCE- 80% LEVEL TO MAX OUT THE TAXPAYERS MONEY.

BTW: I think it's welfare whoever gets it. I always referred to my direct and deficiency payments as my farm welfare check. And don't shoot your mouth off about direct payments RSW, you always said yours was like $35 an acre. Try $6 around here.
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Senior Advisor

Re: CROP INSURANCE- 80% LEVEL TO MAX OUT THE TAXPAYERS MONEY.

Why do you guys even respond to this fool, he has shown many times over he has no interest in farming, only milking the government.  His 5 or 6 month absence was an extreme blessing, I was hoping if he ever posted a comment again no one would respond and he would leave with his tail between his legs again.

 

BTW, he doesn't even farm, he is only the (self proclaimed) manager of his families land.

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