Farm Insurance

Quonset 42 years old, insured all the time. Collapsed under snow load Feb 4.

SGI Premium Z4, coverage, paid maybe $12,000 in total premiums, $56,000 paid out last week.

Plus cleanup cost, estimated $5000.

$500 was deductible. Yes Check to be 80% plus on depreciated value on all items listed.

Yes, but would losing this quonset have been an economic setback that your farm could not have recovered from without insurance? If you had invested the cumulative $12,000 over 42 years into your own operation, would you be any further ahead?

I understand many are in a position where the loss of their fully financed house, car, boat, combine, shop etc. without insurance would be a disaster leading to bankruptcy. And the burden of insurance costs is a necessity. I doubt you are in that position.

I'm with Taiga, we insure exactly those items that are required by law, motor vehicles.
And for the last 2 years we did join crop insurance, lured in by the drop in rates. After arguing with the bank (successfully)for years that we wouldn't do it due to the pitiful beginning yield rates for our area. Will have to decide if this is still a paying proposition with the increase this year.

The reinvestment question you asked isn't the same answer you gave Tweety regarding time value of money you've lost storing grain for years upon years and then not selling last spring when there were record prices.

With the price of new and good used equipment, insurance is a must. Balers and tractors along with combines burn down every season.

The cost of building any type of storage shed or shop is through the roof.

AB5, is the condition of your machinery and out building not worth having insurance on?

Your coming across as being penny wise and dollar foolish way to often.

I do appreciate you looking out for my well being. But I might point out the irony of offering financial advice to someone who is in a position to self insure, and store grain for multiple years.

Do you believe that after all overhead and administration costs, the insurance company can invest your premiums and make a better return than you yourself could do by investing it in your own business?

We had an MFWD tractor burn during seeding a few years ago. Found the nearest comparable tractor for sale and bought it outright, was back in the field within half a day. After seeding I bought a used cab and cosmetic parts, replaced a lot of hydraulic hoses and wiring. Have put out multiple small combine fires( and even started one as a last resort to unplug a combine, it worked), and one baler fire.
We have 3 residences, none have ever had mortgages, so if one burns down, we won't be homeless, or destitute.
And yes, most of our equipment and buildings are not worth having insurance on. The only modern major equipment are the combines at 11 and 17 years old. The 4wd seeding tractor is 45 yrs old. I'm currently repairing the tractor that we put the most hours on every year. I paid $1000 for it in "inoperable" state ~10 years ago. Does all the spraying ( 130 foot), does most of the swing auger and grain vac work, all the baling, fertilizer spreading, some harrowing etc. And I have two more identical tractors as back up. I think we will recover from the financial hit if it falls off a cliff tomorrow uninsured.

You never did respond to the thread about storing grain, yet you brought it up again. And neither did tweety when I asked what investment he/she found that did better than double in value in that time? As I said, I messed up, and I regret not selling even more when the price was 2.5 times what it was worth when it went in the bins(the price which was available for only a few days). but in the end, the stored grain all sold for at least double what it was worth when it went in the bins. So I'll ask again, what did you invest in that had a better return than that? If you had an ROI of better than that, you most definitely beat the insurance companies returns on your premiums, and should consider self insuring for yourself.

Aren't we all lucky to be making the most of the system we're living in with what we were given?
We are all also private corps with no shareholders to impress or Harvard grads to listen to.
Subsequently the right and wrong is judged only by us and measured by no one. What is clear is that while at times we suffer from hubris, none are stupid.

The reinvestment question you asked isn't the same answer you gave Tweety regarding time value of money you've lost storing grain for years upon years and then not selling last spring when there were record prices.

False premise perhaps?
They collect from many but pay out a few.

I'm sorry you're losing me.
Are you suggesting I can self insure investing my premium money elsewhere?

Many expensive/almost new RV’s written off due to rodent damage. Guess no one wants cats around anymore.