Written by people who have no understanding of farming much less crop insurance. To use terms like moral hazard in the heartland is very irresponsible.
If the crop as you state is withered what is the point of throwing more expense after something that probably isn’t going to survive. Farmers have to make a management decision at what point it doesn’t pencil out.
Do a better job of researching.
Moral hazards for insurance carriers exists everywhere, cities and heartland it doesn’t matter. What I got out of that point was its still early in the season so if all of a sudden it starts raining and the crops do fine the farmers who gave up early still may have to file claims. ie A Moral Hazard risk the insurance carriers are seeing in the heartland right now.
I agree with the post. Poorly researched. When a crop is dying, neither pesticide nor herbicide are going to save it. Also no responsible farmer is going to harvest a field where the grain coming out of the machine does not equal the harvesting costs. Also no farmer I know wants to harvest crop insurance. In the short run having crop insurance may save the farm but in the long run the farm is lost.
This article has some factual bullet points…but is surrounded by competely incorrect assumptions.
As a farm kid turned insurance agent, I actively work with many farmers in Illinois. 1) No farmer is allowed to “plow under” their crop without prior approval from their MPCI crop insurer. 2)
As noted in one of the comments above, farmers utilize a 10yr average to determine earned levels of guaranteed coverage for the federal crop (MPCI) policies. No farmer is going to plow under a measurable crop, thereby entering a zero as part of ten years worth of production.
Written by people who have no understanding of farming much less crop insurance. To use terms like moral hazard in the heartland is very irresponsible.
If the crop as you state is withered what is the point of throwing more expense after something that probably isn’t going to survive. Farmers have to make a management decision at what point it doesn’t pencil out.
Do a better job of researching.
Moral hazards for insurance carriers exists everywhere, cities and heartland it doesn’t matter. What I got out of that point was its still early in the season so if all of a sudden it starts raining and the crops do fine the farmers who gave up early still may have to file claims. ie A Moral Hazard risk the insurance carriers are seeing in the heartland right now.
I agree with the post. Poorly researched. When a crop is dying, neither pesticide nor herbicide are going to save it. Also no responsible farmer is going to harvest a field where the grain coming out of the machine does not equal the harvesting costs. Also no farmer I know wants to harvest crop insurance. In the short run having crop insurance may save the farm but in the long run the farm is lost.
This article has some factual bullet points…but is surrounded by competely incorrect assumptions.
As a farm kid turned insurance agent, I actively work with many farmers in Illinois. 1) No farmer is allowed to “plow under” their crop without prior approval from their MPCI crop insurer. 2)
As noted in one of the comments above, farmers utilize a 10yr average to determine earned levels of guaranteed coverage for the federal crop (MPCI) policies. No farmer is going to plow under a measurable crop, thereby entering a zero as part of ten years worth of production.