cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Senior Advisor

Re: I have thrown in the Towel on Planting/ hobbyfarmer

How many acres did your custom guys need to PP?
0 Kudos
Highlighted
Frequent Contributor

Re: I have thrown in the Towel on Planting/ itsmetoo

132 APH X 85% coverage X $5.65 spring price=$633.93 for full planted coverage

 

$633.93 X 70% PP payment = $443.75

 

If you didn't buy the extra 10% PP coverage, you would only get 60% instead of the 70% I have.  Down here in the rain belt we run into the PP issue on a few fields every few years so many buy the extra 10% coverage that most in your area probably don't even know is available.

 

Your right that this is a unit by unit issue depending on the yield history of each farm.  If you have enterprise units like I do, you probably don't want to plant anymore corn if you have some planted.  The earlier planted corn could yield high enough to offset any poor yields you could have planting corn this late.  So you could end up with some poor corn planted now and not collect anything if other fields yield high above your coverage yield.

 

You can get 35% of the PP corn payment and plant beans after June 25.  Don't ask me why you have to wait until after June 25, but that's the rule.  You can get all of the PP payment and plant a forage crop, but it can't be grazed or harvested until after Nov. 1.  So you can spend all summer building all the fences you have ripped out over the years and become a cattle baron on Nov. 1.

0 Kudos
Highlighted
Frequent Contributor

Re: I have thrown in the Towel on Planting/ hobbyfarmer

I do some custom farming for a couple guys too.  From your operators point of view, yes I didn't burn any fuel and put hours and wear on my equipment.  However, if I didn't have the custom acres to farm, I could have smaller less expensive equipment to make payments on and I depend on the custom work income to help make equipment payments and feed the kids.  At this point in time I will let some of my land be PP and finish the custom stuff if the weather allows and the guys still want to try and plant.  It is a bigger hit to the cash flow with greatly reduced custom acres that I don't get to custom plant and harvest, then my own fields that I don't have planted because I can collect PP on them.  I don't know who does your custom work and how much other land they farm but I know that a lot of guys would be out of business if they had the equipment to farm the 2000 acres you talk about and don't get any income off of it.  Not sure what would be fair because everyone's financial situation is different, but if you want to custom guy to still be around next year you may need to share a bit of the PP payment.  They could be going out and renting or buying other land to farm, or go get a job in town, but instead depend on your custom work for income.  Its not their fault either that it has rained all spring.  Just something to think about from the other side of the fence.

0 Kudos
Highlighted
Veteran Contributor

Re: I have thrown in the Towel on Planting/raedmond51

Here is my number for the 60 acres that didn't get planted.  210 bushels per acre APH times 85% level coverage times 60% times $5.65 spring price, which the harvest price will be set in November and the actual price would be the higher of the 2 that adds up to minimum $605 per acre.  Your number is 1/2 that, what gives pinocchio?

0 Kudos
Highlighted
Frequent Contributor

Re: I have thrown in the Towel on Planting/raedmond51

Mike, according to my agent you will only get the spring price with PP.  In the past you would get another check in the fall if the fall price was higher, but that is not the case now if I was told correctly.  The fall price option doesn't apply to PP anymore.

0 Kudos
Highlighted
Veteran Contributor

Re: I have thrown in the Towel on Planting/raedmond51

This was the email from my agent:


From: xxxxxxxxx@msn.com

To: xxxxxxxxxxx@live.com
Subject: RE:
Date: Fri, 31 May 2013 14:31:15 +0000

Double checking again

So the APH for 2013 on a farm that preventive planting was used would be the average of the corn yield on the remaining corn grown in 2013?  2nd, the fall harvest price is still open on pricing for PP and we are not stuck with the spring price?  Thanks---Mike


From: xxxxxxxxx@live.com
To: xxxxxxxxxx@msn.com
Subject:
Date: Wed, 29 May 2013 14:58:14 -0500



xxxxxxxxxxxxxxxxxxx
Crop Insurance Agent
xxxxxxxxxxxxxxxxxxxx
Pocahontas, IA 50574

 

 

 

 

 

Good Morning,,,,
 
With you being enterprise, yes it would be the average of the remaining corn grown in 2013.  Yes the fall harvest price is still open.  $5.65 is the least amount you would receive.
 
Thanks

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Crop Insurance Agent
xxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Pocahontas, IA 50574


 


0 Kudos
Highlighted
Advisor

Re: I have thrown in the Towel on Planting

If you've signed up, wouldn't you know?

0 Kudos
Highlighted
Frequent Contributor

Re: I have thrown in the Towel on Planting/raedmond51

Your agent is telling you that your preventive planting payment would be based on the average APH on the acres that you did plant??????  I think that is incorrect as well.  Your farms still have there own APH even when using enterprise units and I believe that is what your paid on.  If you had a poor yielding farm unplanted, how would it make sense for your payment to be based off of the higher yielding farms you have planted?  If you planted it, your coverage won't be the average of your other farms.  It would be that farms APH X your coverage level - the late planted discount.  That total would then be added to your other farms to come up with your total bushel guarantee of your enterprise. My agent has been telling folks that you need to look and each farm that is unplanted because depending on your APH, some you may want to switch to beans if you have good bean yield and poor corn APH or PP corn.  I even have 1 farm that I have only had a few years that has had poor corn crops and good beans crops, that I can actually get paid more with PP beans then PP corn.  In my area the last few years, beans have done really good and corn has struggled.  I have heard of soybeans out yielding corn on the same farm several times the last few years.

 

I really don't think my agent is incorrect because they have a lot of experience with PP because they sell a lot of insurance in a very big area of S. IA & N. Mo.  In this area there are a lot of wet bottoms that run into PP nearly every year.  I know of 1 farm that was planted last year after 4 years of PP.  From what I have heard that this is the first time every that this has been an issue in N. IA.

 

I don't want to say your agent isn't right, but I would recommend getting a second opinion.  I don't want you to make a choice and be upset when you don't get paid what you thought you would.  

0 Kudos
Highlighted
Advisor

Re: I have thrown in the Towel on Planting

Remember this RSW next time you start throwing stones at the guys that lost their farms in the 80's. There are somethings you just can't control. You're fortunate for good insurance today. You best share your payment with your custom guys as I'm sure they have payments to make also.

0 Kudos
Highlighted
Frequent Contributor

Re: I have thrown in the Towel on Planting

Yes, I remember awhile back getting into a debate with him about that he would not have had the chance to buy land so cheap back then if the current crop insurance options were available in the 80s.   Taking PP today sucks, but its a walk in the park compared to the choices in the 80s.  If this weather happened back then, there would be land auctions next week.  Most will live to fight another year if they take PP this year.  This year should bring some of the high cash rent and land prices back to reality, but it probably won't.

0 Kudos