Crop Insurance Payments

[TOM4CWB]

Charlie;

The best that I can get out of crop insurance, is that we will likely not be paid till Dec. or Jan of 2003.

Now how do we pay bills this fall with no Canola, a wheat 25% call on practically nothing, and seed that we are supposed to save for farmers next spring that don't have any money either?

Is there any way to get an advance on crop insurance, I understand that Sask. has a program, is Alberta looking into something?

[charliep]

Need more information. I talked to crop insurance and they tell me cheques are being sent out.

[TOM4CWB]

Thanks for looking into it Charlie.

The problem is that I didn't apply to have all my crops written off... I wanted to try to get something, especially for my Landlords...

So they say I must finish harvest, report the yield, be bin measured by inspectors, and then they will look at sending money.

As you can imagine this will take some time...

[TOM4CWB]

Charlie;

I talked some more to Crop Insurance...

Yes some checks are going out for those who had everything written off.

It is rather strange, as if people are honest who combine written-off crops, then the post-harvest report will trigger a claw-back of any bushels harvested above the harvest allowances for threshing and picking up the small crop... about 2.5bu/ac as 0 writeoff and anything over about 3.5bu/ac counting fully.

Most farmers and Crop Insurance Agents two weeks ago didn't talk about this post harvest report... that MUST be filed... when ANY harvested grain MUST be reported to Crop Insurance...

It is very important that carry over grain from previous harvests MUST be reported NOW or Crop Insurance inspectors will count these stocks as this years harvest production... as All farmers receiving crop insurance proceeds MUST have their Bins checked and elevator receipts reconsiled with harvested production reports...


What a nightmare of work... we in the North that haven't had to be paid Crop Insurance before will find out what RED TAPE is really like... and that there are no free rides... and that life isn't a bowl of cherries!!!

This brings us back to Crop Insurance Advances... it seems to me to be out of line to pay out crop insurance before a post harvest report has been properly filed... and bins measured/ reciepts reconsiled...

It would be much more fair for everyone involved if a 25% advance, on total estimated losses, would be avaliable especially on written off fields...

Crop Insurance has a good idea what total losses and average yields are now... so figuring out an advance for individual policies with the computerised system we have now should be simple...

[charliep]

I have requested help on this from AFSC.

[TOM4CWB]

Charlie;

Thanks, there is more to this than we know... a memo that changed everything in mid stream...

But the horse is out of the barn door... and will be hard to get back into the barn...

The advance payment system would stop the Crop Insurance problem of needing to write off everything so that farmers can get paid in a timely fasion, as "Time is of the essence" is one of the Crop Insurance clauses.

I just know that there is many bad feelings out here over this issue, and the Alberta Government is going to get a black eye out of it if they don't resolve this in a fair manner... that is not only fair... but precieved to be fair.

Integrety is key, and a good name to be desired more than gold...

[rosco]

TOM4CWB;
Guys in my area have been fighting wiht crop insurance for 2 months now, just to get checked. I put in my claim on july 25, and still no action. I gave up waiting and swathed my canola and bale-silaged my barley, which is just what they wanted me to do-make the call myself and live with the consequences. That being crop insurance just walk in and check my bins later and not have the risk of writing off a crop that may be worth more. We are going to see a lot off grain go "missing" and harvested crops fall under the 2 1/2 bushel threshold.
Here's a scenario that really rips me:
My neighbour seeds RR canola and has crop insurance for $130/acre. Terrible crop, gets checked last week, gets the TUA back for $15, no harvest costs of $15, and sells the crop standing for $30/tonne or about $10/acre for a gross of $170. I seed smart canola and insure for $130, poor crop and I can't get checked, so I pay a buddy to double swath it because I feel I've got 5 bushel there. $15 of harvest costs and possibly $35 subtracted off my payment, leaving me with $80 acre and 5 bushel to try to sell as best I can. Who makes out better here?? I do the best I can and this is my reward?? I am beginning to understand why some farmers "farm" the system!

[TOM4CWB]

Rosco,

I know what you mean...

I just harvested a quarter of canola today... 2.5 net bu/ac.. #2 seed... had to spray with Reglone to get it near dry as the second growth was almost 3 feet high growing through the swaths, still it averaged over 11 moisture.

WHat a deal... spend way more money to harvest than the crop was worth.

But I do have decent crop insurance coverage... which I have paid dearly for over the years...

So if we can get the crop in next spring... without too many huge operating loans... I guess we should count ourselves BLESSED... as many are not going to make it in business till next spring...

And if we look at other peoples problems... that are life threatening and terminal... I would say in perspective... Alberta crop insurance is probably the best on the planet... not that we can't make it better...

So since I can borrow money, even if it does take 4 more months to get paid, and even if some of my neighbours ... "Get Ahead" and are treated "Better" than I am... there are few I would trade places with!!!

So I must still say we are BLESSED to live in Alberta!!!!!

[TOM4CWB]

Tom this winter will be the best time in the history of Western Canada to have a HOW TO MAKE CROP INSURANCE COVERAGE BETTER MEETING while the problems are fresh in everyones minds.

[TOM4CWB]

Kernel;

I was involved in the last Crop Insurance review... seems like every year the government says things will change... but change for Crop Insurance is almost as slow as changing the CWB!!!

Amazing what happens when we deal with government made monopolies... they have a life of there own...

But since so many have seen the many faces of disaster, you are right...

WE should see if we can get a Crop Insurance bear pit session at the Feb. Ag Tech farm meetings in Edmonton!