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Missouri Declared a Natural Disaster

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4Diamond

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Now it's official.

http://www.news-leader.com/article/20120718/NEWS11/307180040/missouri-drought-natural-disaster?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE
 

R A

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Picture of my north pasture. I'm looking for a good camel to work the ranch on. :D

d3-1-1.jpg
 

leanin' H

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Shoot, ya'll have no idea what dry is! :roll: :D Hope ya get some moisture soon. And by the way, Missouri has been a disaster for as long as i remember! :p :lol: :lol:
 

R A

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:D

Heck, I ran my herd up to Minnesota and dumped them in with Soapweeds heifers. So far I don't think anybody has even noticed, since I run so few cows. :D I just have to go get them before it's too late to get them back. :shock:
 

George

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My son was watching the USDA report this morning and they are worried that if we have to many losses the crop insurance does not have the funds available to pay off!

We have the maximum amount allowed here and it cost us $50.00 per acre for coverage and if we are declared a total loss we would get back $900.00 per acre. I just wonder where the $50.00 per acre we and most others have been paying in for years has gone.

We are considered small around here with 2,300 acres in row crops but we will have over $400.00 per acre in putting out a crop - - - sure glad we have the insurance this year!
 

jodywy

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leanin' H said:
Shoot, ya'll have no idea what dry is! :roll: :D Hope ya get some moisture soon. And by the way, Missouri has been a disaster for as long as i remember! :p :lol: :lol:
Yup my wife's ancestors persecuted my ancestors back in Missouri like a150 years ago…. :shock:
well if you got a pipe line for stock water , be easy to find the leaks in that sand :roll:
 

burnt

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George said:
My son was watching the USDA report this morning and they are worried that if we have to many losses the crop insurance does not have the funds available to pay off...

- DTN Headline News
Will Insurance Break Bank?
By Chris Clayton
Monday, July 23, 2012 7:50AM CDT

HADDONFIELD, N.J. (DTN) -- For the past 25 years, Illinois farmer Steve Pigg has been trying to forget that he didn't carry crop insurance in 1988. That was the year when drought burnt his average corn yields to 40 to 60 bpa and he even disked down some of his McDonough County's fields.

"If it hadn't been for a very understanding banker who let me defer some payments I'd have been put out of business," the 700-acre corn and soybean grower said. "We'd just come off another drought in 1983, and I was not fully recovered from that."

The near-death experience made such a crop insurance believer of Pigg that he became an agent and has purchased coverage on his farm ever since. It's a consolation now that he expects his immediate area to yield only about half a corn crop based on spot field checks this week. That means roughly yields of 95 to 100 bpa on his fields with a 10-year yield history of 213 bushels.

"I was so convinced corn prices were going to be $4 this fall on a record crop, rather than corn's $5.68 spring price, I didn’t buy a revenue policy with a harvest-price adjustment," he said. Still he could qualify for claims worth about $35,000 on his corn crop.

"It won't make me whole," he said, "but I should come out OK."

Pigg hasn't collected much back for his crop insurance premiums since that last epic drought, and neither have many of the state's growers. Since 1989, Illinois corn growers received 43 cents in indemnities for every $1 paid in premiums even though the federal guidelines aim for a 1:1 ratio. But estimates of the size and scope of crop insurance payouts throughout the heart of the country's corn production region this year is sparking a budget debate that could tilt the outcome of the Farm Bill.

In hardest hit regions such as northeast and southwest Indiana, western Kentucky and western Tennessee, a number of growers already are thinking of mowing down their crops. "We're seeing a large percentage of very low -- 10 to 30 bpa or 60 bpa -- yields. That's well below what people are used to," said Tom Sloma, vice president of insurance for Farm Credit Services of Mid-America with 3,500 customers in their four-state area. "Some ears just never formed."

The magnitude of those losses means some insurance carriers are privately estimating that crop claims nationwide could total $40 billion or more this season, nearly four times the all-time record of $10.8 billion in 2011, Sloma said. "They've seen lower numbers, but they think they are way too conservative."

In an interview with DTN, Kansas State University economist Art Barnaby called that $40 billion figure "el Toro poo poo" and argued that both Illinois and national crop conditions remain better than during the drought of 1988. He's sticking with a $10 to $11 billion estimate on 2012 insurance claims until crop conditions deteriorate further. Barnaby concedes that USDA economist Joe Glauber's $20 billion outside estimate could eventually materialize although it would be a shocking tab.

Only five of the top 18 corn-producing states, including Indiana, have 2012 crop condition classifications worse than 1988 so far, Barnaby said. "The good news is Iowa is in better shape than was the case in 1988 and rain would really help," he added.

What's most disturbing to Barnaby is that wild cost estimates seem politically motivated to derail support for crop insurance in the pending Farm Bill. For example, the Environmental Working Group's Scott Faber calls crop insurance "a gold-plated disaster program."

Critics may again push for payment limits or income-eligibility caps to keep the crop insurance budgets down in the future. "But if we monkey around with the parameters of insurance contracts, we will be messing up some long-term farmer marketing plans," Barnaby said. Growers need the option of a potentially expensive harvest-price guarantee to forward contract production, just in case their crop fails and they need to settle with elevators.

When considering payouts, critics often don't point out that growers will have paid an estimated $12 billion in premiums this year, that private companies will shoulder more than $1 billion of the exposure and that the federal government made $4 billion in net profits from crop insurance during the last decade, he emphasized.

At the moment, University of Illinois economist Gary Schnitkey expects the state to average 130 to 135 bpa corn this year, down from 155 bpa in 2011. By Barnaby's estimates, that will generate statewide indemnities of about $1.7 billion, a loss to insurance companies and the federal government of about $1.18 billion. If state yields approach 105 bpa, payouts could hit $3.2 billion and wipe out 25 years of underwriting gains, Barnaby said.

Iowa Farm Bureau President Craig Hill, an early advocate of revenue insurance in the 1996 Farm Bill, thinks $10 to $11 billion loss estimates are far too conservative. "Iowa corn yields haven't been lost yet, although crops on sandy soils are burnt up and gone," he told DTN. "But if we go another 10-14 days without relief, it is a crisis. We can't afford to lose the eastern Corn Belt and Iowa on top of it."

This just isn't business as usual when you zero out corn fields insured for $700 or $800 an acre, Hill added. "I will be shocked if the payouts are only $40 billion."

Budget exposure matters because the crop insurance title "is the only thing" that has been unscathed in the Farm Bill debate so far, Hill said. "There's no money for conservation. The commodity title, with direct payments, is gone. We could really lose that [crop insurance] program when they see the size of the money going out."

See a related story on this topic by Chris Clayton on the Ag Policy page, "Higher Crop Insurance Payouts Shifts Risk to Federal Government"

Marcia Taylor can be reached at [email protected]

Follow Marcia Taylor on [email protected]
 

Denny

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R A said:
:D

Heck, I ran my herd up to Minnesota and dumped them in with Soapweeds heifers. So far I don't think anybody has even noticed, since I run so few cows. :D I just have to go get them before it's too late to get them back. :shock:

Been to busy haying to notice. :wink: Were done with all our highground next were going to try walking on water.
 

Denny

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burnt said:
George said:
My son was watching the USDA report this morning and they are worried that if we have to many losses the crop insurance does not have the funds available to pay off...

- DTN Headline News
Will Insurance Break Bank?
By Chris Clayton
Monday, July 23, 2012 7:50AM CDT

HADDONFIELD, N.J. (DTN) -- For the past 25 years, Illinois farmer Steve Pigg has been trying to forget that he didn't carry crop insurance in 1988. That was the year when drought burnt his average corn yields to 40 to 60 bpa and he even disked down some of his McDonough County's fields.

"If it hadn't been for a very understanding banker who let me defer some payments I'd have been put out of business," the 700-acre corn and soybean grower said. "We'd just come off another drought in 1983, and I was not fully recovered from that."

The near-death experience made such a crop insurance believer of Pigg that he became an agent and has purchased coverage on his farm ever since. It's a consolation now that he expects his immediate area to yield only about half a corn crop based on spot field checks this week. That means roughly yields of 95 to 100 bpa on his fields with a 10-year yield history of 213 bushels.

"I was so convinced corn prices were going to be $4 this fall on a record crop, rather than corn's $5.68 spring price, I didn’t buy a revenue policy with a harvest-price adjustment," he said. Still he could qualify for claims worth about $35,000 on his corn crop.

"It won't make me whole," he said, "but I should come out OK."

Pigg hasn't collected much back for his crop insurance premiums since that last epic drought, and neither have many of the state's growers. Since 1989, Illinois corn growers received 43 cents in indemnities for every $1 paid in premiums even though the federal guidelines aim for a 1:1 ratio. But estimates of the size and scope of crop insurance payouts throughout the heart of the country's corn production region this year is sparking a budget debate that could tilt the outcome of the Farm Bill.

In hardest hit regions such as northeast and southwest Indiana, western Kentucky and western Tennessee, a number of growers already are thinking of mowing down their crops. "We're seeing a large percentage of very low -- 10 to 30 bpa or 60 bpa -- yields. That's well below what people are used to," said Tom Sloma, vice president of insurance for Farm Credit Services of Mid-America with 3,500 customers in their four-state area. "Some ears just never formed."

The magnitude of those losses means some insurance carriers are privately estimating that crop claims nationwide could total $40 billion or more this season, nearly four times the all-time record of $10.8 billion in 2011, Sloma said. "They've seen lower numbers, but they think they are way too conservative."

In an interview with DTN, Kansas State University economist Art Barnaby called that $40 billion figure "el Toro poo poo" and argued that both Illinois and national crop conditions remain better than during the drought of 1988. He's sticking with a $10 to $11 billion estimate on 2012 insurance claims until crop conditions deteriorate further. Barnaby concedes that USDA economist Joe Glauber's $20 billion outside estimate could eventually materialize although it would be a shocking tab.

Only five of the top 18 corn-producing states, including Indiana, have 2012 crop condition classifications worse than 1988 so far, Barnaby said. "The good news is Iowa is in better shape than was the case in 1988 and rain would really help," he added.

What's most disturbing to Barnaby is that wild cost estimates seem politically motivated to derail support for crop insurance in the pending Farm Bill. For example, the Environmental Working Group's Scott Faber calls crop insurance "a gold-plated disaster program."

Critics may again push for payment limits or income-eligibility caps to keep the crop insurance budgets down in the future. "But if we monkey around with the parameters of insurance contracts, we will be messing up some long-term farmer marketing plans," Barnaby said. Growers need the option of a potentially expensive harvest-price guarantee to forward contract production, just in case their crop fails and they need to settle with elevators.

When considering payouts, critics often don't point out that growers will have paid an estimated $12 billion in premiums this year, that private companies will shoulder more than $1 billion of the exposure and that the federal government made $4 billion in net profits from crop insurance during the last decade, he emphasized.

At the moment, University of Illinois economist Gary Schnitkey expects the state to average 130 to 135 bpa corn this year, down from 155 bpa in 2011. By Barnaby's estimates, that will generate statewide indemnities of about $1.7 billion, a loss to insurance companies and the federal government of about $1.18 billion. If state yields approach 105 bpa, payouts could hit $3.2 billion and wipe out 25 years of underwriting gains, Barnaby said.

Iowa Farm Bureau President Craig Hill, an early advocate of revenue insurance in the 1996 Farm Bill, thinks $10 to $11 billion loss estimates are far too conservative. "Iowa corn yields haven't been lost yet, although crops on sandy soils are burnt up and gone," he told DTN. "But if we go another 10-14 days without relief, it is a crisis. We can't afford to lose the eastern Corn Belt and Iowa on top of it."

This just isn't business as usual when you zero out corn fields insured for $700 or $800 an acre, Hill added. "I will be shocked if the payouts are only $40 billion."

Budget exposure matters because the crop insurance title "is the only thing" that has been unscathed in the Farm Bill debate so far, Hill said. "There's no money for conservation. The commodity title, with direct payments, is gone. We could really lose that [crop insurance] program when they see the size of the money going out."

See a related story on this topic by Chris Clayton on the Ag Policy page, "Higher Crop Insurance Payouts Shifts Risk to Federal Government"

Marcia Taylor can be reached at [email protected]

Follow Marcia Taylor on [email protected]


Anyone read this he was expecting 200 buschel corn at $4.00 a buschel and now he's expecting 100 buschel corn thats tradeing in the $8.00 range so 200 x$4 = $800 or 100x$8 =$800 same income per acre I say he'll be fine they'll make more with less adding in the crop insurance. I wish I could buy weaning weight insurance.Well most likely I would'nt buy it either I refuse to buy crop insurance just another non-sustainable govt program.
 

mrj

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How is it unsustainable when the PROFIT to government in the ten BILLION dollar range over the past ten years??? How many government programs make that kind of money FOR THE GOVERNMENT?

We don't raise cash crops, but the hay insurance sure hasn't paid to have when we tried it and 'drouthed out' on the hay production.

The insurance programs where the farmer pays a premium for coverage of damage seems more realistic and honest than simply paying to support them when markets don't adequately compensate.

Though the proper name for those programs is FOOD subsidies, imo, intended to assure food for consumers rather than real income for farmers.

Unless we want ALL our food grown in foreign nations, keeping farmers 'alive' financially IS the alternative, it seems.

mrj
 

4Diamond

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leanin' H said:
Shoot, ya'll have no idea what dry is! :roll: :D Hope ya get some moisture soon. And by the way, Missouri has been a disaster for as long as i remember! :p :lol: :lol:

LOL I realize we have no idea what a desert is but we and are cattle aren't adapted to such a prolonged hot and dry spell. This area is great with decent moisture as we can run many cattle but when the faucet shuts off we start hurting very fast.

I have never understood how you can feed your way out of a drought but at the same time with cattle taking the hit they have I don't know that many can afford to sell and lose 30-40% from where prices were.
 

4Diamond

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Governor just now released $2 Million for 90% cost share for wells pipes and tanks through the state SWCD's.
 

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