The Des Moines Register’s Post

EXAMINING THE RESTRICTION ON USING SCO INSURANCE FOR ACRES IN ARC — by Carl Zulauf, Jonathan Coppess, Gary Schnitkey and Nick Paulson Current public versions of both the House and Senate farm bills increase the subsidy and coverage levels for SCO (Supplemental Coverage Option) insurance. SCO insurance can be purchased only for acres elected into PLC (Price Loss Coverage commodity program). SCO cannot be purchased for acres elected into both ARC (Agricultural Risk Coverage) commodity programs. A commonly-stated rationale for this restriction is a concern that payments by SCO and ARC will overlap. This analysis however finds that, in general, little relationship exists between per acre payments by SCO and ARC-CO (ARC county version) for barley, corn, oats, peanuts, long and medium grain rice, Japonica rice, sorghum, soybeans, and wheat over the 2015-2022 crop years. This finding does not support current policy of allowing SCO insurance to be purchased for acres in PLC but not for acres in ARC-CO. Read more: https://lnkd.in/eGJhHtKS #FarmBill #CropInsurance #crops #subsidy #coverage #acres

A recent PGGW appeal decision highlights the need for proper due diligence in farm purchases. Philip and Julie Routhan purchased a West Coast dairy farm for $2.8m in December 2010. PGG Wrightson Real Estate Ltd (PGG) were found to have induced the purchase with a statement that the farm was producing an average of 103,000KgMS (Milk Solids per Kilogram) per season. After taking possession, the Routhans faced significant challenges in meeting the promised production figures – with the farm only producing 85,000KgMS in the 2010/2011 season. In an attempt to meet the advertised figures, the Routhans undertook significant capital expenditure. Details of the case and court decisions are summarised in the full article here: https://lnkd.in/gbS2BubV This case is a cautionary tale, emphasising the importance of purchasers undertaking proper due diligence and verifying the veracity of key data such as production values. If you have any questions about farm purchases or sales, please contact a member of our specialist Rural and Agribusiness Team. #andersonlloyd #agribusiness #CourtofAppeal

🌾 The Farm Bill is crucial legislation supporting the agricultural sector, providing necessary support and tools for farmers, ranchers, and landowners to navigate market uncertainties and risks. To learn more about navigating the complexities of this policy click on the PDF below. Be sure to check out the author. 👇 #FoodandAgriculture #Crop #Insurance

Grain dryer fires are a significant risk on modern farms and are common this time of year. They can cause catastrophic damage to property, stock, and result in financial losses. We’ve compiled a short post with simple tips to help prevent grain dryer fires on the farm. https://lnkd.in/eff4qbwa #farminsurance #insurancebrokerireland #fireprevention #smartinsurancesolutions Brokers Ireland Irish Farmers Association FBD InsuranceThe Insurance Institute

Loan portfolio positioned for lower commodity prices: Milk sector a case in point The new season farmgate milk price announced this week was 15% lower than last year’s average as major dairy processors responded to higher domestic input costs relative to the lower global milk price (source: Fonterra Australia). With 10 Australian processing factories having closed in the past 18 months, the industry challenges of a milk price 20-30% higher than the global index has taken its toll (ABC News). We have reduced our loan exposure to farmgate dairy (from 9% to <1% across the Merricks Capital Partners Fund and the Merricks Capital Agriculture Credit Fund) as the sector has been well-banked over the past two years, with interest coverage increased due to the higher milk price environment... Click for the image for the full report #privatecredit #agriculture #agribusiness #investments #fundmanagement #milkprice #australia

We recognize the challenges being faced by Ontario’s beef farmers and have worked with Beef Farmers of Ontario, the Government of Canada and Agricorp to find ways to help alleviate financial pressures. Ontario is moving up the Q1/Q2 RMP payment for beef farmers to the end of August to provide cash flow earlier. To enable this the deadline for sales reports will move up to July 15. Also the 30 month or less age requirement for cattle is being temporarily waived. The governments of Canada and Ontario have increased the AgriStability interim payments to 75% for beef producers facing financial pressures. The Ontario government and the Beef Farmers of Ontario are closely monitoring loans under the Feeder Cattle Loan Guarantee Program. If needed I will work with BFO to look at flexibility on deadlines. Agricorp is committed to working with farmers on a case-by-case basis. Producers who are struggling with cashflow or premium payments should contact Agricorp to discuss their options. For more information see the BFO statement on their website (www.ontariobeef.com) or visit Agricorp's website (www.agricorp.com). #OntAg

First it was Oil & Gas, then Mining, and now farming is the latest victim. Definitely a well written piece by Bella Bathurst on a sector that is facing several challenges. This is one of the most important topic that Capitals Hub Canada and partners is looking at bringing to COP16. Here is a snippet of the article "Some version of family farming – dysfunctional or harmonious, exhausted or exploitative – has shaped Britain for 7,000 years. The land worked the people and the people worked the land. But does that subcutaneous bond between a parcel of land and a person have a value, or just a market value? And if you take that away – take the family farm away – what does Britain look like then?" #agriculture #farminglife #farming #climatecrisis https://lnkd.in/gYTEhyxx

🌽🚜 Ready to rev up those planters? The forecast is looking promising for corn and soybean planting across the USA next week! According to ECMWF, below-average rainfall is on the horizon for the corn belt, setting the stage for some serious sowing progress. But hold on tight! GFS still hints at above-average rainfall in certain regions, like Iowa, which might slow things down a tad. Keep an eye on the skies and let's hope for clear fields and speedy planting ahead! #PlantingSeason #CornAndSoybeans #FarmLife #insurance #cropinsurance #reinsurance #fintech

One reason the Fulani always have cows is because they hardly eat their cattle. Instead, they drink the milk and eat their cows' other dairy byproducts. As a result, they always have cattle for sale. Learn from them, and you will never be broke. Your money is your cow. Don't eat it by spending it. Instead, invest it, and then spend some of the dividends of your investment, but leave your capital to keep expanding. Your dividend is your milk and dairy byproducts. Your capital is your cattle. Understand this, and you will understand the fundamentals of wealth. #RenosNuggets

Strikes dent Bakkafrost Q2 volumes show latest figures : The Q2 harvest volume in the Faroe Islands fell below Fearnley Securities' estimates for the company's performance.  Faroese salmon producer Bakkafrost reported its harvest numbers for the second quarter, announcing a total of 10,200 tonnes of salmon slaughtered in the Faroe Islands and 11,400 tonnes at its plant in Scotland. This information was disclosed in a stock exchange announcement on Monday evening. Additionally, the company reported feed sales of 32,900 tonnes in the second quarter. Havsbrún, a wholly-owned subsidiary of Bakkafrost, purchased 90,600 tonnes of raw materials during this period. In 2023, Bakkafrost sold 127,800 tonnes of salmon feed through Havsbrún, which bought a total of 467,100 tonnes of marine raw materials for feed production throughout the year. The Q2 slaughter volume in the Faroe Islands fell below investment bank Fearnley's estimates, likely impacted by a 28-day labor strike that began in mid-May. The fish harvested in the Faroe Islands included those from an area where Infectious Salmon Anemia (ISA) was detected, resulting in a lower average weight and margin. In Scotland, Bakkafrost's harvest volume was slightly below Fearnley's estimated 12,300 tonnes, achieving 75% of the company's forecasted slaughter volume for 2024 in Scotland. (Full)} } https://lnkd.in/ddtMFRqu