Sask crop insurance isnt insurance. It's a tax.

[farmaholic]

INTO THE CROP INSURANCE ANALYSIS THIS MORNING, AGAIN!!!!!

Ya right, online brochure says premiums are 60/40 shared, Gov/Grower respectively.....

So my canola premium/ac is $24.17 base price @ 80% coverage. (0% experience/low claims discount)

Therefore they are insinuating the total premium cost/ac is $60.42 of which they(Gov) are paying $36.25.....

Ya right.......

[farming101]

Seems high....
Different risk zone...
Yield coverage?

[farmaholic]

Seems high....
Different risk zone...
Yield coverage?

Risk zone 7 , G class soil(we have some worse than that)

Area yield, 39.3, used 80% coverage. As mentioned 0% premium discount for the Sandbox farmer from the Slum of the Ghetto.

What am I doing wrong?

Any thoughts ?

[farming101]

Working off 6.1% premium at 80% coverage with no experience discount factored in here

Unless risk zone difference changes things a lot should be:

39.3X.8=31.44
31.44X10.55=331.69
331.69X.061=20.23

I see zone 7 is .074%. Your calculation looks right

[farmaholic]

Working off 6.1% premium at 80% coverage with no experience discount factored in here

Unless risk zone difference changes things a lot should be:

39.3X.8=31.44
31.44X10.55=331.69
331.69X.061=20.23

Premium to coverage ratio on my example is 7.3%.

[farming101]

That's the difference

[ajl]

Just renewed home insurance. Basic 3 yr old farm house worth $250000. Think double wide and you get the idea. Premium is $556 per year. Crap insurance is a little better here in AB but not much. Comparable premium for your $331 worth of coverage on canola would be $0.73. Government may be even more inefficient than we feared. I think administration of crop insurance burns money like nothing else. How much more is the loss payout ratio really?

[farmaholic]

Wiseguy, on the above, Risk area 7, class G (better Ghetto dirt) 0% premium discount, 70% coverage, base price.....premium is $14.41......almost ten bucks cheaper than 80% coverage(base price)

5% premium to coverage ratio versus 7.3% for 80%....huge difference.

[farmaholic]

Opt out of Municipal Hail and take a reduced(70%) Crap Insurance Coverage?

Municipal Hail cancellation deadline March 31...........

[farmaholic]

Farma ! You mentioned the establishment benefit rule ! Did sask crop insurance screw you in the past ??

We've only ever been in crop insursnce twice (I think!) and so long ago I can't remember when...once was when "GRIP" was brought in! So no I didn't bring up the crop establishment issue but I did comment on it in a thread where someone else mentioned it....was that you?

Is AgStab definitely dropping the allowable expense calculation as a reference for a payment trigger? (Versus 70% of the Olympic average of the previous five years' margins?)

[Klause]

Imagine picking the coverage you want, choosing from 22 different companies and either selecting multi peril or named peril crop insurance.



All at lower cost than GARS or SCIC...

[farmaholic]

Imagine picking the coverage you want, choosing from 22 different companies and either selecting multi peril or named peril crop insurance.



All at lower cost than GARS or SCIC...

.......go on......

[Rareearth]

And on

[farmaholic]

http://www.saskcropinsurance.com/agristability/ http://www.saskcropinsurance.com/agristability/

WISEGUY IS RIGHT, THEY DROPPED THE ELIGIBLE EXPENSE MARGIN LIMIT CALCULATION USED TO TRIGGER PROGRAM BENEFITS. (or should I say prevent triggering a payment!!!!!)

THIS IS A POSITIVE MOVE, THANKS FOR THE HEADS UP WISEGUY.

Edit......, if it wasn't for the average eligible expense margin limit used to trigger a payment instead of 70% of the Olympic average of the previous 5 years margin calculation I would have been in a claim position of over $54K in the 2014 program year because of some real healthy reference margins in the precious five years. 😠

[Klause]

.......go on......

The Argentina system...