The herald-advance. (Milbank, S.D.) 1890-1922, 1919-05-02
Why Garry Hail Insurance

DIV to inquiry as to the pra.tical
reasons why farmer should carry |
Hail Insurance in the state fund.
Pierre, So. Oak.
Dear Mr.. Newell:
have your letter in which you
ask if in my judgment, a farmer
should carry hail insurance IN the
State Fund for the 1919 season.
have given this matter great deal
Of thought and consideration and
realizing, as do. that you farm a
considerable acreage and that the
insurance premium is matter CT
some moment, that unless you feel
justified you would hesitate in obil-
eating yourself to pay it.
To make a concrete case, let us
take ito account the sowing of 100
acres of wreat. Wheat on the
market at the present time is 1925
per bushel; seed wheat such as you
use on your farm is worth ar the
least calculation 50 so per bushel.
You SOW at least j / bushels to the
acre. so that the seed alone tor an
acre Of wheat would approximate
$50. Add to this the cost OF
blowing. or $500 per acre and
Sl.0O an acre for drilling and drag
gine the ground and you have al
ready invested in your land 50 II,
TO say nothing of rental.
Only two things can prevent you
from getting returns from this ex
penditure Of time and money drouth
or hail. You can eliminate one of
these conditions by paying small
premium into the State Hail Fund
of Csc per acre, in your particular
zone. Or, in ether words, taking
into consideration 100 acres of crop
you can get 81 100000 protection
on your investment of $4,000. so
far as hail is concerned by paying
$500, or 3Afo for insurance in
the State Hail Insurance Fund-a
much lower rate than has ever been
made to the farmers Of any state
for hail insurance.
The farmers of the state paid out
in the last seven years for hail in
surancs the sum of SIS, ,723, ,3l0 IS,
receiving ia return in the same
time S3,3oo7, ,285.15; in 1918 the
farmers paid for hail Insurance in
South Dakota 81 ,577,2l7.27 and re-
ceived back in losses 1853. 1863 .46,
which was 1890. 924.l2 less than
they paid in premiums, on about
one-seventh of the cultivated land
Of the state. The large expendi
ture for insurance premiums led to
vote on the question of whether
the State should provide hail in
surance to the farmers at cost or
not and it was decided by vote Of
approximately two to one that the
State eliminate all possible over
head expense and furnish hail in
surance to the farmers of the State
at actual cost.
My Attention has been called to
parties who, through selfish in
terests. are asking the farmers to
exempt themselves from the State
hail insurance law. giving as one of
their main reasons that State hail
insurance in North Dakota has not
been successful. There is no COM
parison between the North Dakota
law and the South Dakota law.
Under the North Dakota law the
farmer was compelled to pay cash
IN advance which sometimes necess-
itated his borrowing the money to
pay the premium; nor did the North
Dakota law provide for payment Of
the losses in full, while the South
Dakota law provides for payment
of 1O0c on the dollar.
Some insurance agents. we are
informed. have in their possession
exemption blanks furnished them
by certain of the companies they
represent, asking that the agent
have the farmer exempt himself
from the State hail law to the end
that they may secure a larger prem
ium for their company and COM
mission for themselves. II the far
mer hasn't ready cash to pay the
premium they will take his note.
In the State Fund no note is requir-
ed, nor interest charged. premium
being payable after January lst
each year with other taxes. Then.
too, we have been informed that
certain attorneys over the State are
recommending that the farmers
come to them so that they can make
out exemption blanks for them, so
that they may collect small fee
for this service. The Assessor will
carry all necessary blanks which are
80 simple that the farmer can make
ALo..a o..A y, h;c nnY, homo and mail