Price discovery period underway for 2010 Crop Revenue Coverage for wheat
Farm and Ranch September 3, 2009 The price discovery period for determining the harvest price for Pacific Northwest wheat for 2009 Crop Revenue Coverage ended August 31st. Unofficially the average Portland price for August, which would be the harvest price, was $4.89 a bushel. The minimum CRC price guarantee was $8.98 cents a bushel. So, depending on their yields this year, growers with CRC could be getting an insurance payment of $4.09 a bushel on the percentage of their production with coverage. According to Dave Paul of the regional office of USDA’s Risk Management Agency, a lot of wheat acres had CRC insurance. He says of the 3.5 million acres in the region 79 percent had some insurance coverage. Paul: “And of that approximately 86% of the total coverage in under a CRC insurance plan.” The minimum price guarantee for CRC for 2010 crop wheat will be several dollars lower than 8-98. Paul says just what it will be is being determined right now. Paul: “For the 2010 it is based on the Chicago Board of Trade price, which we will start calculating in the middle of August. That is actually an August 15th to a September 15th calculation of the Chicago price with a basis off of Portland.” And that price is currently averaging $5.65 a bushel. The sales closing date for crop insurance on 2010 crop winter and spring wheat is September 30th. I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on the Northwest Ag Information Network.
