Tablerock Ranch eastern Wa | Throw the baby out with the bathwater comes to mind. I am no expert on fed crop insurance as I shifted careers later in life, but I did grow up in a dryland wheat community and watched what drought years could do to the local guys that produced an actual crop humans directly consumed. How many years can the US government depend on a wheat farmer feeding the population creating a secure national food source, when one year could potentially put him out of business. Example John bought a wheat farm at 32 years of age and is financed to the hilt, he did however invest $160,000 dollars of his own money into his operation "life savings" he invests $680,000 of borrowed money into his wheat crop, he experiences drought among any other hosts of potential risks and only grosses $280,000... one year and he is DONE, he didn't have access to affordable insurance. You say let the free-market work and don't let the gov subsidies, let the insurance co set the price.
Scenario two John buys crop insurance from company one at 4 times the subsidized rate raises a decent crop but with inputs high and wheat prices a break even, a high insurance input cost was the difference between farming another year or throwing it in. Maybe this doesn't apply to corn and beans as I am not in that part of the country, and maybe it doesn't apply to me as a rancher and cattle feeder But in the PNW where a huge percentage of the country's wheat is produced lack of affordable crop insurance could be a game changer and I could see productive land idled, and the country's food security threatened.
Sounds like major changes are needed listening to the Midwest farmer on here, talk of massive abuse and fat cats working the system but I don't think the country can achieve food security without affordable insurance.
Young guys need to be able to enter this industry without it being a bigger risk than a casino. |
Fed crop ins, should we really abandoned it.
