Jessica A. Chittenden|
March 03, 2009
New Crop Insurance Opportunities for Corn and Soybean Producers
New Price Change Limit Doubles the Base Price, Discounts for Consolidated Units
New York State Agriculture Commissioner Patrick Hooker today advised New York’s corn and soybean producers to carefully consider new provisions of the 2009 Crop Revenue Coverage (CRC) policy. The new provisions include a new price change limit that doubles the base price and a price discount for those that consolidate their insurance units.
"As the March 16 deadline for crop insurance approaches, it is critical that New York growers understand all the new requirements and provisions of federally-subsidized crop insurance programs. Corn and soybean growers in particular have some attractive options this year with Crop Revenue Coverage that extend protection from yields to market prices. The time is now to educate yourself on these opportunities and consult with a qualified crop insurance agent."
USDA’s Risk Management Agency announced the base price for corn at $4.04 per bushel and soybeans at $8.80 per bushel yesterday, which provide the new price change limits for this year’s Crop Revenue Coverage (CRC) and are based on the Chicago Board of Trade (CBOT) averages. The CRC policy does not have a down price change limit if the market declines. Therefore, if the October price is higher than the February price, the guarantee is recalculated using the higher price, up to double the spring price and no additional premium is charged for the increased protection.
Also offered in 2009 is a premium price discount of up to 80% for producers who qualify for separate insurance units, but elect to insure all of their corn and/or soybeans as a single consolidated insurance unit. This option, called an enterprise unit, may not result in a loss payment unless the loss is severe enough to cause the revenue from the consolidated enterprise unit to fall below the insurance guarantee.
CRC for corn in New York is available in all 52 counties. For soybeans, CRC is available in 23 counties including Allegany, Cattaraugus, Cayuga, Chautauqua, Cortland, Erie, Genesee, Jefferson, Livingston, Monroe, Montgomery, Niagara, Onondaga, Ontario, Orleans, Oswego, Schoharie, Schuyler, Seneca, Tompkins, Wayne, Wyoming and Yates Counties. Coverage in non-insured counties may be obtained through written agreement requested before March 16.
As required by the new Farm Bill, most crops, including corn and soybeans, must be enrolled with crop insurance or FSA’s Non-Insured Disaster Assistance Program (NAP) in order to be eligible for crop disaster payments. Farmers who purchase coverage at higher levels will receive increased guarantees for disaster protection.
In addition to corn and soybeans, the crops covered by crop insurance policies with a March 16 deadline include dry beans, barley, oats, fresh market sweet corn, grain sorghum, green peas, potatoes, spring forage seeding, processing beans, processing sweet corn. Apple and grape producers who missed fall crop insurance deadlines can restore eligibility for crop disaster payments by enrolling in the whole farm revenue protection policy AGR-Lite (Adjusted Gross Revenue) by March 16.
The New York Crop Insurance Education Program is intended to provide New York farmers practical, timely, up-to-date information on which to make an informed decision about integrating crop insurance into their risk management planning. The Program is administered by the New York State Department of Agriculture and Markets and the USDA Risk Management Agency partnering with the Farm Service Agency, Cornell Cooperative Extension, Cornell University and others.
For further information, consult the New York Crop Insurance Education Program website at http://www.agriculture.ny.gov/AP/CropInsurance.html or call New York State Department of Agriculture and Markets at 1-800-554-4501.
2009 Press Releases