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> Canada will surely be having it's own insurance program. The main one is production insurance, protecting against disaster events like weather. It doesn't fo
by randomdata 9y ago
> Canada will surely be having it's own insurance program.
The main one is production insurance, protecting against disaster events like weather. It doesn't focus on price. Of course, it applies to all crops, not just corn, providing incentive to grow something – whatever is profitable due to market demands – but not corn specifically.
In the last few years there has been an addition of a program that sounds more like you describe the US system, but it seems ill-conceived and not clear how you would ever get your premiums back. I have not enrolled in it personally. It definitely is not impacting my decision to grow corn.
> if Canadian supply is cheaper people will buy cheap corn from there and import to US.
Naturally, but that only works if there is demand. The parent seemed to be suggesting that the US government subsidizes US farmers to grow corn due to the absence of market demand.
> Curious what price level you would say is unprofitable to grow corn?
I would say the breakeven point is somewhere around $4.50/bu. for my business. I have most of my corn crop sold at $5 this year, so I'm comfortable with those margins. Wheat is the crop that is going to be a money loser for the foreseeable future.