Early this week, USDA doubled the base price for corn and soybean crop insurance and the price discount for those that consolidate insurance units. That's why New York Ag Commissioner Pat Hooker advises growers to carefully consider the new provisions of the 2009 Crop Revenue Coverage policy.
"As the March 16 deadline for crop insurance approaches, it's critical that 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."
USDA's Risk Management Agency raised the base price for corn to $4.04 per bushel and soybeans to $8.80 per bushel, providing new price change limits for this year's Crop Revenue Coverage. Prices are based on the Chicago Board of Trade averages.
The CRC policy doesn't have a down price change limit if the market declines. So, if the October price is higher than the February price, the guarantee is recalculated using the higher price, up to double the spring price. 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.
Depending on the state and county, CRC coverage may or may not be available. Corn is covered in most counties. But soybean coverage may be limited. Coverage in non-insured counties may be obtained through written agreement requested before March 16.