Market facilitation payments program

[Hopalong]

See it described as making the difference between profit and loss for many USA farmers.
For us in Canada, likely will not affect us much, US planting plans were likely made based on other factors.
As a direct type payment if it is continued, biggest effect may be to increase land costs.
Canadian governments are reluctant to increase spending on business risk management programs including crop insurance and agristability.
Suspect they have a point when they say taxpayer money to farmers eventually shows up as higher land prices.

[TASFarms]

Pretty sure that the risk programs are coming in as a net profit for the gov and not as an expense on the tax payer.

[SASKFARMER]

Say with a accountant from MNP on the way to Florida and so I asked him what his thought was for farmers to get a payment from the federal program.

Then we both laughed as he explained if you had good yield and have half the crop off you probably won’t get a dime.

Like crap insurance the winner is the gov.

[bucket]

The MFP lower the market because the farmer was supposed to be made whole by the government....Lower prices were to help increase exports....


Canadian farmers just ended up with lower prices....no top up...

For those that want to go up against the US treasury ...fine but eventually...you....like previous generations will need an adhoc payment...

Its the law of diminishing returns.... its all Ok if you start with a inherited million or two...

[Hopalong]

Have come to think of agristability and crop insurance as insurance rather than government programs meant to raise our incomes through subsidy money.
The programs give us the confidence to spend large amounts of money on crop expenses each year that have resulted in greater production and profitability.
Without the programs in place we would have cut back more on input use in years when prospects were less bright.
Recall early days of crop insurance when the program was widely abused, at least in Saskatchewan.
Was apprehensive when AgriStability was introduced and thought there was too much opportunity for shady stuff.
Give governments credit for amount of policing and checking that has occurred.
Accountant friend told me that program would support long term profitable farms and I believe he was right.

[SASKFARMER]

Both programs work if you have a total wipeout.

Get hailed on entire farm and 1 to 10 bushels if you can combine.

Hail pays right away.

Crop insurance pays as soon as they have a total yield.

Ag stab covers up the rest to a min.

So basically you can survive a total wreck in theory.

[newguy]

And Ag stability works even worse if you have cattle to diversify your farm.I quit a couple years ago.

[sumdumguy]

Correctimondo Newguy. If you have a cow-calf operation, the calves are your crop. The times it would help would be if a devastating disease wiped out your herd. The decrease in inventory might trigger a payment. Mixed farms are somewhat self-insuring, so I’ve been told.

[Oliver88]

Correctimondo Newguy. If you have a cow-calf operation, the calves are your crop. The times it would help would be if a devastating disease wiped out your herd. The decrease in inventory might trigger a payment. Mixed farms are somewhat self-insuring, so I’ve been told.

Private hail insurance works against grain farmers as well.

[bucket]

Private hail insurance works against grain farmers as well.

I thought they were making changes to private insurance....in regards to agristabilty. ....