AFSC price insurance time

[ajl]

Was just reviewing the price insurance list. I have used this program years ago, but since they changed it to make it ineffective a couple of years ago haven't paid attention to it recently. There was a few crops last year where you would have gotten enough to make the premium worth it but odds are not in your favor. I figure with the loon dropping, it is not likely you will collect for anything again except maybe feed barley. Once US corn starts to move north, feed barley prices in the 3.50 range for this fall is a distinct possibility. Oats may have a small payment given that oats acres are likely to rise. I figure revenue crop insurance as the risk management system rather than agri stab, but the bureaucrats just can't come up with a system that works even though it is done in Ontario and the US.

[Marusko]

The SPE is expensive for what it is, in my opinion. I don't know if it's subsidized like the crop insurance is.

[ajl]

It is expensive. It pretty much is just to collect premium off of suckers so I guess there is little uptake. Back when it was first introduced, I had been able to make use of it occasionally. It is too bad as I would like a revenue based risk management tool covering a combination of yield and price but I guess that is too simple for the powers that be so we are stuck with the horrible agri stab.

[blackpowder]

Last I ever really looked at it a put option was cheaper. Essentially what your paying them to do.

[poorboy]

Barley looks like a good thing to take the SPE on.

The rest of the commodities look less likely to need the SPE at this time.

BUT,

These are very unprecedented times and the grains could tank just a quick as oil, a few big crops in key areas or credit issues on buying countries or political games. The SPE on every crop might be good insurance for those who don’t trade futures.

[Ab7]

I’m loading up on it this year, I think the odds of good prices this fall are not good.
Definitely not cheap though