August will determine Crop Revenue Coverage market price
Farm and Ranch August 6, 2009 August is an important month for Northwest wheat growers with Crop Revenue Coverage, CRC and that‘s most of the producers. Dave Paul, with the regional office of USDA’s Risk Management Agency, says the average of Portland prices from August 1 through the 31st will determine the market price used in the CRC calculation.
Paul: “Last fall producers’ insurance guarantees were based on an $8.98 price, which would mean you would take their average yield times their coverage level times that price to determine their insurance revenue guarantee. And this fall when they finish harvest they will take their harvested and/or appraised production times the harvest price that we will announce early in September based on that August average.”
The average price so far this month is running at about $5 a bushel, making the difference between the basic price and the market price $3.98. If you go to the RMA website you can follow the average price on a daily basis under tools and calculators.
Paul says it’s estimated that 79 percent of this year’sPacific Northwest wheat crop has federal crop insurance and 86 percent of that is Crop Revenue Coverage. He says total wheat coverage in the region was a record 1.3 billion dollars.
I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on the Northwest Ag Information Network.
