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<blockquote data-quote="gst" data-source="post: 95433" data-attributes="member: 373"><p>It will be interesting to see what things look like for them this year. The last 7 years have been much different than what is coming down the pike. </p><p></p><p>Whether people in ag wish to admit it, the Federal crop insurance program has been the catalyst for the downfall of production ag. </p><p></p><p>It is much like a snake eating itself by it's own tail. </p><p></p><p>Everytime the insurance program comes up with a figure of revenue assurance land rents and inputs follow right to that figure. </p><p></p><p>When there are guaranteed revenues everyone wants their piece of the pie for chemicals and fert. and do the math just like the farmer figuring how much more he can pay for cash rent over his neighbor based on the differences in proven yields and base rates. </p><p></p><p>These insurnace programs have encouraged lands that would be better off in grass to be rented for much higher rents and broken up and farmed. That in turn has led to less diversification in ag and the consequences of "all your eggs in one basket" problems that creates. it also impacts markets, especially the "specialty crops we raise here in ND that do not have the huge market corn,wheat and soybeans have. </p><p></p><p>CRP acres coming out impacted these specialty markets significantly on some crops. A few hundred thousand acres makes a big impact on some of these markets. </p><p></p><p>Then the insurance plans themselves are screwy. Under the Prevent plant insurance, you could not seed a cover crop and use it for any value. So the incentive to plant a cover crop and help mitigate water issues so insurance risks for being wet were lowered was penalized rather than promoted. But then it is a Federal program so what can we expect. Combine that with a younger generation that do not wish to engage in the type labor involved in diversified operations or that commitment of time ...</p></blockquote><p></p>
[QUOTE="gst, post: 95433, member: 373"] It will be interesting to see what things look like for them this year. The last 7 years have been much different than what is coming down the pike. Whether people in ag wish to admit it, the Federal crop insurance program has been the catalyst for the downfall of production ag. It is much like a snake eating itself by it's own tail. Everytime the insurance program comes up with a figure of revenue assurance land rents and inputs follow right to that figure. When there are guaranteed revenues everyone wants their piece of the pie for chemicals and fert. and do the math just like the farmer figuring how much more he can pay for cash rent over his neighbor based on the differences in proven yields and base rates. These insurnace programs have encouraged lands that would be better off in grass to be rented for much higher rents and broken up and farmed. That in turn has led to less diversification in ag and the consequences of "all your eggs in one basket" problems that creates. it also impacts markets, especially the "specialty crops we raise here in ND that do not have the huge market corn,wheat and soybeans have. CRP acres coming out impacted these specialty markets significantly on some crops. A few hundred thousand acres makes a big impact on some of these markets. Then the insurance plans themselves are screwy. Under the Prevent plant insurance, you could not seed a cover crop and use it for any value. So the incentive to plant a cover crop and help mitigate water issues so insurance risks for being wet were lowered was penalized rather than promoted. But then it is a Federal program so what can we expect. Combine that with a younger generation that do not wish to engage in the type labor involved in diversified operations or that commitment of time ... [/QUOTE]
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