The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1918-05-24
LOSSES MET
STATE SYSTEM
canadian Provinces are
bviding Protection at
Low Cost.

Ih 1927 report of the State Hail
anf8Nce Commission of Saskatche-
- iii f<zgently published, contains inter-
tit1s Information for farmers who
sIieye IN State Hail insurance. Of
Ptore s6 ffz1ds collected for the 1916 crop
he o. nScn MY 6.12 per cent. was needed
han, ex0enses and the remaining 1888
= cent was available for paying
Nv losses, or to be more explicit,
spapr every 500 of revenue, $93.8S were
cur burned to farmers suffering hail
dig sses. The Province of Alberta
cigar nlich also has state hail insurance
foreim > had an even more favorable ex-
travor r1ence. It's cost of administration
:, :. or period Of 4 years was only
:, 38 per 500 of revenue annually.
'he NO prfvate company does business
OF moi such small margin Generally
pusand private companies must have from
10 pe5 to SO or more to pay field agents.
even neral gents, officers, office ex-
|, CO., nSe, adyertising and private profits
les the s. s. NJ ne,nts for ;n 1924
Vow that over a space of years
private companies operating in
Clgars, 1t state paid back to farmers who
put ID suffered hail losses only 500 out
w wa every 800 of premiums collected
g. seir margin Of $31 was over times
Pt righs;nsssIn saskatcbawan and over
Times Che margin for four years
Alberta.
Methods of Operation.
By the Saskatchewan plan an extra
LOT 4 cents an acre is levied, with
e''es exceptions, on all the land of
rs COM munIcipality County which has
s3ded - accept the state insurance.
q plan thus recognizes the funda-
% Inta1 erin ciple that the idle land
Tins III value by whatever promotes
success of farming in the locality
ZANE should in fairness to the men
- ~ .ually working their land. bear
BIT least of the cost. The maxi
is9n lpss paid is SIS an acre
- aha,revious to 1917 Alberta levied only
hop) dat tax on all assessable lands,
lu that year the act was amended
provide (1). fat tax of cents
AK acre on all land; and GU an adj
f0naI levy on crop area only. The
/ for put on the crop lands last year
:. Eavs So cents an acre. But this means
.4,a.L Alberta plan assures the pay
nt ne crop losses in full. in import
---- advantage over the Saskatchewan
--taod which not only limits the pay
T int Of hosses to $500 an acre but
N0flvides Tor prorating the payments
mere are not enough funds to cover
-the ohIigations. The Alberta farm
REDITfs thus always insured in full, and
act pr0yides for temporary borrow
holph Bif the Iosses in bad year exceed
funds collected. The borrowed
c;x,on sney ii then paid back in the good
Eator s.
Iph Bes so S. ots'e Sys.e".
ors Wy Leagne has advocated state hail
ms sspraIzce similar to that of Saskatche-
hibit and Alberta as a simple, easy
Ehers Who'd of cutting down one Of the
ret pubenEes Of farming. Private insur-
old adde against hail is. of course. better
iii Ito Insurance at all, but it's meth
are too wasteful, too costly, to
Fd' W tolerated by an enlightened farm
pc tfaD community: Only state system,
estau instance, can shift part OF the
den at east to the land held out of
b. BEN for speculation. Only state
+ho tenn can make the great savings
~ sihle when every farmer subject
SOM the risk is taken in automatically.
;. fila1esota is depending entirely
lay ~ ineffIcIent private companies