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highyields
Senior Contributor

Re: Floor Talk July 31

It might make you sleep better if you don't know

nitefarm
Advisor

Re: Floor Talk July 31

Don not know if true ,but my agent said after a 7% loss the gov. kicked in.

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Hobbyfarmer
Honored Advisor

Re: Floor Talk July 31

OK guys here it is... The insurance co's are just the "agent" for the Govts "book".

 

Not one has much personal exposure to the "loss" of Federal crop Insurance. Thats why it is called "Federal".

 

Where the insurance co's exposure is, is in the fringe things like Hail, Temp, Rain, even pasture insurance, and all the other hybrid things out there in some areas.

 

You guys got other things to get worried about, but one of them is not "IF you'll get paid on your Fed Crop Ins" With the amount it'll be this year they may just call it QE3.

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Jim Meade / Iowa City
Senior Advisor

Re: Floor Talk July 31

I saw a FB press release that said all 16 crop insurance companies meet the requirement to have 40% of projected losses on hand.  The government RMA stands behind all the insurance.  So, the fed will just print some moeny and send you some.

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marketeye
Veteran Advisor

Re: Floor Talk July 31

nitefarm,

 

You are mostly right. Ultimately, it doesn't matter if the crop insurance companies are financially stable. The fed is the re-insurer that will back up the crop insurance companies. I shouldn't say it doesn't matter, of course it does to an extent. But, the farmer will get his/her check. Now, the issue is when will the check be issued, from what I gather. I'm sure there is a lot more to this issue. But, know that ultimately, the fed backs the crop insurance companies.

 

Mike

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Jim Meade / Iowa City
Senior Advisor

Re: Floor Talk July 31

Because of the new structure of crop insurance, we may not be able to defer income as we used to be able to.  We may be forced to take some income in 2012 whether we want to or not.  Stay tuned to crop insurance agents and CPAs to have this figtured out before you finish your 2012 income tax planning.

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jjoseph
Frequent Contributor

Re: Floor Talk July 31

Yep those under the red should be getting some real sprinkles. Go long but watch out for gov intervention

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