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NCND | WE GET crop insurance when we have weather disasters. Do you guys always just raise a good crop or what? Im trying to understand but if a guy controls the water and always gets the crop in I wouldn't carry insurance.
We do all enterprise units typically and our big claims lately have been PP from not getting things planted by June 10th date. Example 2011 we had about 35% of acres not get planted. We are talking essentially whole fields not wet areas. We get pp on 65% of our 75% guarantee so thats roughly 48% of guarantee on 35% of acres so net that year 17% of revenue came from PP. We also had losses on our crop that year on wheat so we collected insurance there but it wasn't close to 17% of total revnue. 2011 was a very bad year here floods and floods and ya just wasn't a good year. Had 2.5 days we planted in May after 0 in april due to the big snowpack so wasn't much we could do then most of the crop was put in June1-7 which is not good for wheat at all. Got hit with 100 degree temps during flowering which slaughtered yields.
2013 was better yieldwise but ended up with 25% PP. Rain started may 18th and didn't stop until after late plant deadline.
Our direct payments here were probably less than 3% of gross revenue. Closer to 2 than 3 actually.
We are in the land of extremes. We once went 15/16 years without paying a hail insurance premium. Missed hail last year but year before we had about 2500 acres hit hard by hail.
Water management adn its lack of flexibility here has hurt us the most. I was going to leave farm program to do it but now they tied conservation compliance to insurance subsidy and then added all the other carrots and you almost have to be in program when all your competition is in it. Not an easy answer either way but what do you do.
Edited by vailcat 2/8/2014 14:58
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New Farmbill thoughts have prompted me to ask this question. Who has been writing your checks?
