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Honored Advisor

Re: Dang the top of the grain bin popped off

sw, I live in an area that crop insurance has caused the raping of pasture and former hay ground.

 

Many of these hills get passed around between bto' s , t yields are high enough for a three year rotation between them. $12 to $20 premium gets you a profit .

 

Cheapie, and others: set asides will no lonUger work in this day and age. That genie is out of the bottle. Absolutely the only thing that'll accomplish is a faster race to clear more brush and trees in South America. More technology transfer to anywhere else with farmable ground.

 

SM corn was unloaded on our East Coast already this month. Corn here has never been over $3.61 cash this last three months and freight is cheaper from Podunk Corners South America then right here in the same country.

 

Agco is furloughing a pretty good % of their workforce at Heston, Ks, what'll you think gonna go on with the other companies? 

 

Crop insurance is messed up and has like any well intentioned gov't program has fostered several unintended consequences.

 

There are plenty of fringe acres in the heart of "corn country" being farmed that is nothing short of criminal.

I'll be happy to take anyone on a one day tour and point out many many examples of "cow farms" being farmed for no other reason than the crop insurance backstop is profitable.

 

Jim lives in an area that 150bu corn is the disaster year. Might taint his views slightly?

 

I do think there will be and need be changes, who volunteers first....if not enough we will start a draft...

 

 

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Veteran Advisor

Re: Dang the top of the grain bin popped off

Not everyone farms in Iowa.  No need to throw the baby out with the bathwater -- don't need to discontinue crop insurance in order to limit or discontinue the subsidies.

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Veteran Advisor

Re: Dang the top of the grain bin popped off

You do realize that the crop insurance you're talking about was once 100% a federal program, right?  It was called Federal Crop Insurance.  Sometime around or just after 1980, they started selling it thru private insurance companies, while also selling it at FSA.  

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Honored Advisor

Re: Dang the top of the grain bin popped off

We could have a set a side that would work, what would be required is as our prices rise and South American beans come into the Carolina ports, they get a $3 tariff slapped on every bushel.  We already getting our clocks cleaned in the balance of trade with most countries, so we really have nothing to lose. But smart looking people in suits go on CNBC and repeat often enough about trade at any cost is gooood and "Smoot Hawley  Smoot Hawley!" .   I saw AgDay devoted their whole half hour as a pro NAFTA infomercial this morning.....look at their advertisers, follow the money  Smiley Happy   too many in that swamp are making too much money on farmers and factory workers getting screwed.   And we click on the news thinking that we`ll get informed and all we end up getting is their propaganda and fear of the devil if we change.

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Honored Advisor

Re: Dang the top of the grain bin popped off

Hobby, I think the wording should be that crop insurance maintains the "raping of pasture and former hay ground".  As I remember the cattle and hogs left the farmsteads of Iowa in the 1960's and 70's to make the move Sw for a better winter climate..........the 4 legged snowbirds in portable stockyards.

But I think you give too much credit to crop insurance.  I think we all do.....   I really doubt the participation in the program is all that high(above the entry level maintained to prop up numbers).  Especially in the belt. Yes in your area but why in northern iowa.  Isn't that why in the mid 90's they had to tie the program as a requirement to get other payments to encourage participation?

Riskier areas use it but Jim claims not to.  And it was not in use much at all until that mandate for participation.... Even on the fringe.  

I bookkeep for a cross section of this area and this is extreme fringe on average..... Not a targeted fringe like your area hobby, but a good ole tough climate area.  We participate on a very selective basis.  Now we plant 4 major crops.  We participate in the insurance in 2 of them.... the premiums are way too high for the other two.  We have bases for two other crops that have a history here when FSA programs encouraged(and cotton is becoming very prevalent because of FSA's "protection".  And we will soon be out of the program for all crops.

But prior to 2011's drought these acres never participated in federal crop insurance--- The premiums and rules made a bad choice.    We have water protection for 80% of our production.  Hail is the only thing that can take our production.  Only 20% of our production is at risk to drought.... and the way the rules keep changing, that is about all crop ins will pay a claim on.     Heat in 2011 took crop.. with "a once in a 100 year event"--- 117 degree heat in june without crop insurance and we still had 150 bushel corn average ..... not the 240 we expect but not much of an insurance claim.... except on drylands  where "if you had it" ,insurance premiums would be close to your net expected return.

We used insurance 2012-2015 because the claims on dry land would pay for the insurance premiums while we were in a dry period.... Now we are leaving the program again because our dry land yield history is used up and the irrigation won't have claims..... The rules keep changing to exclude small acreage events like hail.  

As irrigation leaves this area over time and goes back to dryland, cattle and grass.  Ins will kill itself as yield histories will rise and fall in 8-10 year cycles and the government payment to support high risk areas becomes too high for FSA's budgeting of "buffalo commons".

It fits your area because you can rebuild yield so readily after a claim....... Hopefully the public has wised up to the communist take over of congress enough to stop that "water ways of the US" movement before it excludes river drainage from farm program participation.  It is a highlight of my life to meet and know someone for whom crop insurance works....

 

too many words................

 

I think we are talking about something that is another "mole hill" in usda's pretended mountain range......(like statistical data-NASS- maximum respect for minimum effort)......... Crop insurance has never lived up to it's promotion and still remains a pass through subsidy to those parasites who became "insurance companies" with the advent of the program, and has been funded by producers more than benefiting producers.

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Honored Advisor

Re: Dang the top of the grain bin popped off

One other thing, Hobby....

 

Set asides work and have come back but not because of FSA or a program

 

But because they make sense and profit in the western high plains.  Like the rotations that are already in place out west.....in spite of usda's pushing for fence row to fence row.....

It is one of the benefits of larger farms managing more acres.  Usda's "carrot on a string" stops working when limits are reached, and good management finally prevails...  Smiley Happy

 

I assume you are talking about usda forced set asides....

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Honored Advisor

Re: Dang the top of the grain bin popped off

My friend

 

At least occasionally ........................ we need your thinker here....

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Honored Advisor

Re: Dang the top of the grain bin popped off

They need the set aside program in South America...............................................

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Honored Advisor

Re: Dang the top of the grain bin popped off

 Rt: they have one...it is us.

 

We are it ,crp, and mandatory healthcare expenses, many with unpayable inputs. Yep we are almost setting ourselves aside. They are the beneficiaries of this.

Honored Advisor

Re: Dang the top of the grain bin popped off

SW, might want to check on the hog thingie, 

 

Iowa is #1 in hog production, 

#1 eggs (chickens)

#1!corn

#1 or 2 in soy depending on year

 

The Iowa DNR, chased much of the cattle feeding industry out.

 

WCMO and others I'm not against crop insurance, I am so far ahead of them they'll never break even on me.

 

BUT there are hundreds of thousands of acres that wouldn't be farmed if it wasn't as it is now.

 

Fed crop insurance guarantees over production and cheap food stuffs.

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