08/27/08 Big change in price change limits for revenue insurance

Farm and Ranch August 27, 2008 USDA's Risk Management Agency has made a significant change for 2009 in the price change limits for its revenue coverage insurance plans available for Pacific Northwest wheat growers. RMA's regional office Director Dave Paul explains the change for Crop Revenue Coverage and Revenue Assurance policies. Paul: "In 2008 there is a $2 per bushel limit between the base price and the fall harvest price, both the upside and downside. For 2009 crop year the upward bound of the wheat harvest price will be 200% of the base price and there will be no limitation of the downward movement of the harvest price." Paul says the change will more accurately reflect changing markets and ensure consistency across different revenue insurance plans. The projected/ base prices for the various revenue coverage plans will be announced later in September. Paul: "The fall CRC base price for 2009 is based on a formula of the Chicago Board of Trade price with a basis off of Portland but you are using August 15ht to September 15th prices to establish that." An estimate of that price is made each trading day on RMA's website. As of Monday it was $9.71. The sales closing date for 2009 crop wheat is September 30th. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.