Changes in Revenue Insurance Policies Result of High Market Volatility

July 7, 2008 07:00 PM
The September 30th deadline for crop insurance sign-up on fall planted crops such as winter wheat, oats, rye and barley looms large for as higher prices for grains and inputs increases risk on every acre. 
USDA's Risk Management Agency (RMA) acknowledged the increased level of risk producers face when it announced new price change limits for Crop Revenue Coverage (CRC), Group Risk Income Protection (GRIP), and Revenue Assurance (RA).
For CRC and GRIP, there will be a 200 percent price change limit between the base or expected price and the harvest price. There will no longer be downward price limitations for either plan.
For RA, the statement sets a 200 percent price change limit between the projected harvest price and the fall harvest price, but there will be no change to downward price limit.
Crop insurance communications consultant Jan Eliassen says the changes make the policies much more attractive to producers.

"The policies still protect against downside risk but allow you to also attain a higher profitability. That's why they're more expensive," Eliassen says.
Which crops are insurable and what types of policies are available vary from state to state and even county to county. To enroll or make changes to existing policies, contact a crop insurance agent well before the deadline.

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