Saskatchewan, big whitetail country!!! | RDB Farms - 7/4/2012 23:06 I personally think you guys not carrying crop ins are nuts. You guys are on a completely different level than I am. I have over 3 million invested in this current crop and if I lose that I am done forever. Even if you are running on cash look at the opportunity cost you are giving up by taking a step that far back in a disaster. How many good years of making 25 to 30 percent return on your money would it take to recover. If a farm nearby comes up for sale on a bad year and your neighbor carries ins and you don't who will feel better about buying that farm. I turn 30 next month and have farmed on my own for 10 years. I have made huge sacrafices to get to this point and I don't have it in me to start over again. I'm just curious to see others thoughts. Farming has become way to capital intensive to take chances like not carrying ins in my mind but I also cannot see how people can afford to not do any forward contracting so maybe I am doing something wrong.
Bingo! Good post. Same boat here, not flush with old money, old paid for land, or my own money, I can not afford to not insure. I would think if guys actually thought about it, they would realize they can not either. Unless they are farming 40 acres with wives with jobs, or dad bankrolling them, etc... Even then, why would one want to risk throwing away a bunch of income? I don't care if you have 10 million dollars.... It makes little econimic sense, whether you are flush or not. I have made one yield claim in 20 years. It was the difference between survival, and failure. I am in an area where it always rains, often too much. I, like many on here, never thought I would ever have to use insurance.... But that time comes to almost everyone, where weather kicks you down. And who really puts their premium money aside? Come on now... lol |
Crop insurance again.
