landman said:
Boll Weevil said:
Some farmers are to the point of cutting for silage to feed cattle because pastures are so burned up and as already mentioned...much of it won't make anything anyway.
They won't do that around here, unless a dairy farm, Insurance checks a gone if they do, and they will be BIG checks, with this Nation Wide dry weather Oct. corn prices could easily hit $7.50 per bushel, Nov delivered corn was $6.80 on Friday.
So lets say your in Christian Co. KY a $7.50/bushel and county
average at 150 bushels per acre, that $1,125 per acre, 100 acres at $112,500. Not much getting made into silage across TN & KY
Your information is not even close to accurate. Yes they can cut it for silage. They will come in measure the yield at time of chopping then calculate and pay based on the difference based on calculated yield and average farm history. Only if the farmer claims a 100% lose then they cannot chop it. They will not pay 100% yield even if it is a 100% lose. Therefore they farmer will try to avoid a 100% lose claim if at all possible. Sometimes the insurance price is set in the spring. There are other price formulas and none of them are Oct that I am aware of. Some will take Dec futures average price from what it was in the month of Oct which is considerably lower than Oct's price. Friday close on Dec board was more like $6.35.
Using the county average of 150. Say the farmer makes 50% which is 75 bu/a. Insurance is at best 75% which is 112.5 bu/a at best, Minus the 75 bu made means insurance pays for 37.5 bu/a. If the farmer has a contract to deliver and doesn't make the crop he will have to buy out the contract. The insurance is not a profit to the farmer. Most will still loose big.
I didn't say they got a check for 100%, was just using that as an example for pricing. An you will NOT being seeing corn chopped around here or western KY, unless they have a dairy farm.
The Top Producing farmers lose with insurance, but many get that bump, cause they wouldn't be making that kind of corp in a good year. And even the one with 10,000 acres plus, hope for the insurance checks, many did and got them from the fall of 2010 bean crops and loved what they got and made money. I know that for a fact, cause I got rent checks and saw what they made.
