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Honored Advisor

Extreme example, insurance affecting acres

I saw this on New Agtalk.  The 34,000 acre Diamond Ring ranch was put into corn, rent <$20/acre  T-yield 51bu.  Those familiar with it say it should be put back to grass and cattle.   Apparently, it`s planted and they pray for rain or it`s a insurance deal.   Crop insurance enables ground like this to be put in row crops.  See, I would assume they hit the jackpot on yields last year, but this year it`s a settlement check in their mailbox.  Crop insurance is subsidized and probably be too expensive to run schemes like this if the operator had to pay full freight. 

 

https://talk.newagtalk.com/forums/thread-view.asp?tid=726604&mid=6200229#M6200229   

 

 

image.pnghttps___talk.newagtalk.com_forums_get-attachment.asp_action=view&attachmentid=477949&imagerotation=720

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32 Replies
Veteran Advisor

Re: Extreme example, insurance affecting acres

BA  - keep in mind  '''  times  R  chain gen ''   &   one man's folly is another's circus  or  fortune I'm confuuZed  --- 

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Veteran Advisor

Re: Extreme example, insurance affecting acres

Just wait untill the fields look like that in iowa....you'll be talking different.

 

FYI our county t1 is 61

 

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Veteran Advisor

Re: Extreme example, insurance affecting acres

EL  - I can remember  the auction of machinery assets @ 2006 , seems it was a 3 page bill ,  well, well  full circle again , maybe it should be called a family farm for a  disclaimer ?

There was a time when a notion of piping or a canal water structure from the Missouri to that region in South Dakota ---   

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Honored Advisor

Re: Extreme example, insurance affecting acres

This Diamond Ring ranch sounds like every once in awhile if it catches rains it can produce, but to get from here to there, they need "affordable" crop insurance.  Probably a lot of places similar, but for that to work it needs government subsidized insurance and to "pool" that together with more traditional cornbelt states to share that risk.  Those farming traditional corn states are hit with a double whammy, as taxpayers we subsidize acres that should be in cattle and grass and we pay higher insurance premiums and on top of that those additional acres aren't needed in a bloated carryover.  In a nutshell, if grandpa thought someone was crazy planting a piece of ground to corn back in 1947, perhaps there was good reason for that.

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Veteran Advisor

Re: Extreme example, insurance affecting acres

BA, since you poor devils there in iowa are supporting the whole dang agriculture complex, and has all these costs and etc,

i'll tell you what, you sell your place up there, and i'll do my dangest to find you some ground out here, so you can take advantage

of all the spoils we are getting from you folks up there.....i'll tell you what........since your like that mole that's in a delicate place,

you know it's there, it isn't hurting anything, but sometimes it gets irriated and and causes you pain........you are welcome to 

come down, stay on the couch, and eat all the bologna  sandwich with potato chips crushed in your sandwich, diet coke

and maybe some ice cream, if it is on sale.....until you find a place.......and when you do, we'll toast the bread, and put

horseradish mayo and leaf of lettace  on your sandwich.....a can of diet a&w root beer served ice cold (only way to drink it)

and maybe a folded over fruit pies.......but ill fight you for the coconut cream one's. All of that for the celebration.

 

 

let me know a few days before you leave, I need to kick the dog of the couch....and maybe get some dog hair off, and i'm

sure he doesn't have flea's....but just in case, I'll spray it with bug bomb and let it air out in the machine shed for a day or

two.

 

 

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Honored Advisor

Re: Extreme example, insurance affecting acres

No thanks, Elcheapo  Smiley Happy   But, so what`s the deal out there?  Okay, the way it appears is your grandpas raised cattle and a little wheat, now you hotshots that took over got rid of the cattle, it`s more fun loading grain than cattle, I can understand that.  Then hybrids improved drought tolerance and there has been more rains in some years occasionally so everyone started a new row crop revolution in an area that God wanted cattle raised.  

 

Well it`s like starting a orange grove in Iowa, thinking it`ll work because of "global warming" and then expecting to buy cheap insurance on the Iowa orange crop, those in Florida and California don`t appreciate the extra competition and believe me it`s be tough raising oranges in Iowa   Smiley Happy 

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Honored Advisor

Re: Extreme example, insurance affecting acres

Been expecting this one especially up in the dakotas wher the big farms hide.....and the folks who fight the drought are not beat down enough yet.  

 

BA (while I share the concern) you have become the media......

Run with it ...... fan the flames.......... have those anglo congressmen hung from barbed wire....... 

Details ................. who cares    

 

Does crop insurance work at those levels.............. not important 

 

How about "Corn lives matter" on a nice yellow T shirt.......... But there is the choice of color for lettering and ..................................

Lets call for the chancellor of South dakota to resign in embarrassment for his states biggoted attitude toward grass.

 

Is there crop insurance for dead grass???  .......... stop stay focused....

 

Crop insurance supremacy that is what we fight against .......... march on sisters, march on....

----------------------------------------

ramping up the seriousnss

 

Am I with ya here BA.....

Don't miss the picture.   The real picture.  Those are the acres usda is counting on to make 169 bushel average work if you Iowa guys will stop lying about your 450 bushel yields.

 

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How would you like to be in the dakotas where you been raising Iowa yields for several years with a negative $2 basis and now be raising that crop with a $2.50 potential market and haul it 80 miles one way to storage....

And does crop insurance actually promote it?

Lets see........... higher premiums because of that 51 bushel  yield.......... $36 per acre....

                           at that premium a 65 % coverage.........   so he has 33 bushel potential to pay his expenses

                         so thatis $82 of protection to pay expenses on corn ground less the premium (Ill assume he stands half)

                         now that is $64 protection for those corn acres

Conclusion...... Crop insurance at whatever price is not a factor.......

 

Maybe it is the siren call of the Iowa ethanol industry or too much listening to idiot globalists ????

Or maybe it is the cattle who left in a blizzard two years ago???

dilema........ lets turn this back over to the "Corn Belt Media"... 

                           

 

 

 

 

 

 

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Veteran Advisor

Re: Extreme example, insurance affecting acres

BA, its an interesting conversation piece on new agtalk. That ranch needs less corn and more cattle. I love that part of the country, its the history and rugged beauty that I like. I see the Diamond Ring is for sale, since yesterday was my birthday AND a once in a lifetime total eclipse, I bought a lotto ticketSmiley Happy

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Honored Advisor

Re: Extreme example, insurance affecting acres

Hey SW, is it possible that that ranch had a planned insurance claim, so if the operator has basically $62 to pencil out a profit, he could plant 5 acres out of a bag of $100 seed, so $20 + $20 rent and just drag a planter across to give the appearance of "good farming practices" leaving $5/acre profit from insurance?   On 34,000 acres....hey, let`s do it again next year!!!   Drawing out of the insurance well, will run out and become unprofitable one day though.

 

But, I look at these areas and some have a plan to do the "poverty farming" dryland and make it work, the question is how much should taxpayers and crop insurance be obligated to stick their necks out?   It`s kind of like someone building a mansion in the floodplain, the insurance companies won`t touch them, so the government subsidizes their premiums.   Finally after (3) "500yr floods" in a 10 year span, the government just buys them out (whole towns in some cases) and gives them the money to move to higher ground.  

 

But I don`t think it`s unreasonable to ask hard questions on if we should subsidize dryland row cropping in the high desert or building houses on the beach.  

 

I look at feeder cattle, they have been $100 or better the last 10yrs. a lot of it is old cattlemen turning to crops.  So, feeders are what I`d call a good price, I`d rather try and make it on that land with $100 feeder cattle than $3 corn and a $1.50 basis.   Around here cow/calf guys scream bloody murder at less than $140 feeders, but they ain`t kidding anyone, they were strutting around cocky when 15 years ago feeders were $80 too.  But I get it, when you`re 75 it`s more fun in a combine than pulling a calf in a blizzard. 

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