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JimMeade
Veteran Advisor

Crop Insurance 2018 - Planning To Fail?

Unless something unexpected comes up in the markets, there is little reason to expect 2018 crop insurance price guarantees to be much different than the last three years, says Gary Schnitkey of Illinois.

 

http://farmdocdaily.illinois.edu/2017/12/projected-prices-for-2018-more-of-the-same.html?utm_source=...

 

About $4 for corn and about $10 for soybeans (click on the URL to get the actual projected figures).  One can maybe get by at that money but few of us will get fat.

 

What does crop insurance costs per acre these days?  I've lost track.  Whatever it is, that is an amount of money one can do some thinking about.  Of course, with the government paying 60% of the insurance bill, maybe it's a no-brainer.  To most.

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2 Replies
timetippingpt
Honored Advisor

Re: Crop Insurance 2018 - Planning To Fail?

It is clearly a no-brainer Jim...but...you can still mange the cost side of it. Since we felt odds of a corn payout were next to zero for us in IN this year we did 75% YP only for about $4.00 an acre. Pretty low cost to assure continued operation regardless of outcome. Beans we did 85% RA in 2 of our counties and got back enough of a claim to pay for most of the coverage despite pretty good yields and no price decline of substance. So, win win.... huge amount of protection for a very small amount of money. :-)

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elcheapo
Veteran Advisor

Re: Crop Insurance 2018 - Planning To Fail?

well we are just going to have to do things different........last few years been told and told and told and told and told, I have to use

the most newest best this and that and that I have to go for the highest yields........the more bushels, the more money, even if

the price per bushel is lower.........

well there is some logic there, but also some logic that even tho there is more money coming in, more going out..............

 

so.......i'm getting ready to get things set for next year ((if I can afford next year !!))

 

so, I've decided we are going either conventional or RR1 (yes you can still get them), seed less than $30 a bag..........no more

$60 to $65.......last couple of years we have been in a dry hole here........yields are horrible........so I ask these kids if their

expensive seed will grow without rain, they said no, then I asked why should I buy theirs.......they don't know how to 

respond.

we'll put down a pre, that takes care of most stuff, will do our own spraying (got to order my electronic toys one of these days),

to see how nuts things are, we are going to be looking at $7 or more for application, and I can order the chemicals at almost

1/2 the cost as local.  Yep the locals, have nice pu and the like, while I don't, we'll have a lean Christmas, they will not, because

they got all of our Christmas........

we'll do milo next year....sorry, we are going to use the $80 a bag seed.......tired of every seed treatmentment......the insecticide

is supposed to be the biggest cost.....hasn't did any good last few years....and when over $100 a bag, you have to wonder.

last few years everyone has went nuts on sugar chane aphids........everyone did everything aginst them this year, nobody

saw a one......last year had planes flying in every direction, killing them, then to find one of the experts saying it wasn't

really needed  ((but boy the chemical boys sure did say you needed it)).

will be using a generic bicept, or if it looks worse will throw some clisto into the mix, if permitted.

 

corn......in this area, that's nuts..........but you have people planting all over......how you can make money on 120 bu corn

and still use all the expensive stuff, I don't understand..........now if you used open pollinated $88 a bag seed,

generic bicept with some clisto thrown in, and the like, maybe........maybe.......but I know they didn't do it.

 

crop insurance.......going to need it.........this coming year will be important.  in our area we have been lacking rains for a number

of years.....everyone thought the drought was over......no....the profile is dry, and it needs to be recharged....it takes several years

to do that.  a lot of our wheat has not even come up......no moisture to germinate........

so, how will the market help me if the wheat does not even come up ????

 

 

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