3-16 IAN 2011 Crop Insurance
USDA announces 2011 crop year projected prices for combo commodities and additional price selections for for other select commodities. Projected prices and volatility factors are on the mind of the USDA’s risk management agency. Here’s spokesperson Joe Lynn Seofer. We have the new combo program where we combined a lot of our policies into one where producers if they just want to have yield protection they can have yield protection and if they want to have revenue protection then we have what are projected prices that we take off future prices. What happens is if a producer wants yield protection, he can pick two types of revenue protection. The straight revenue protection or the revenue protection with a harvest price exclusion. Volatility factor next to the price is a rating component and it helps to determine the premium rate that a grower purchases when they want revenue protection. That factor will vary from year to year depending upon the volatility of the markets. I would look at it right now and think we have wild markets. In general reality a .20 is assumed to be semi-low but when the values approach .30 or higher then the price is expected to be high and the premium rate will be increased accordingly. See chart below.
USDA’s Risk Management Agency RMA) announced 2011 crop year Multi-Peril Crop Insurance (MPCI) Common Crop Insurance Policy (COMBO) Projected Prices and Volatility Factors, commodity additional price elections and Malting Barley Additional Value Prices pertinent to the Pacific Northwest and Alaska.
Projected Prices and Volatility Factors
|
Crop/Practice/Type |
Projected Price |
Volatility Factor |
|
Barley (Spring) (ID, OR, WA) |
$5.93/bu. |
0.28 |
|
Barley (Spring) (AK Only) |
$5.65/bu. |
0.27 |
|
Barley (Winter) (ID, OR, WA) |
$3.91/bu. |
0.33 |
|
Canola (Spring) |
$0.263/lb. |
0.15 |
|
Rapeseed (Spring) |
$0.299/lb. |
0.00 |
|
Corn (ID, OR, WA) |
$6.01/bu. |
0.31 |
|
Corn (Certified Organic Practice) (ID, OR, WA) |
$10.75/bu. |
0.31 |
|
Wheat (Spring) (AK Only) |
$9.89/bu. |
0.25 |
|
Wheat (Spring) (ID, OR, WA) |
$9.11/bu. |
0.27 |
Additional Price Elections
|
Crop |
Established Price |
Additional Price |
|
Dry Beans |
|
|
|
Black |
$0.32/lb. |
$0.34/lb. |
|
Dark Red Kidney |
$0.37/lb. |
$0.41/lb. |
|
Great Northern |
$0.31/lb. |
$0.32/lb. |
|
Light Red Kidney |
$0.37/lb. |
$0.41/lb. |
|
Pea (Navy) |
$0.31/lb. |
$0.33/lb. |
|
Pink |
$0.31/lb. |
$0.33/lb. |
|
Small Red |
$0.33/lb. |
$0.36/lb. |
|
Small White |
$0.31/lb. |
$0.35/lb. |
|
Dry Peas (Spring Smooth Green & Yellow) |
$0.10/lb. |
$0.12/lb. |
|
Oats (AK) |
$2.75/bu. |
$2.90/bu. |
|
Oats (ID, OR, WA) |
$2.60/bu. |
$2.75/bu. |
|
Processing Beans (OR, WA) |
|
|
|
Baby Lima |
$405/ton |
$670/ton |
|
Snap |
$170.00/ton |
$280.00/ton |
|
Processed Sweet Corn (ID) |
$86.00/ton |
$100.00/ton |
|
Processed Sweet Corn (OR) |
$96.00/ton |
$107.00/ton |
|
Processed Sweet Corn (WA) |
$83.00/ton |
$97.00/ton |
|
Safflower |
$0.1805/lb. |
$0.20/lb. |
|
Sugar Beets |
$41.50/ton |
$47.00/ton |
Prices for crops and crop types not listed above are presented online (www.rma.usda.gov) on the Prices Tab within the Informational Browser. Market conditions for crops and crop types not listed were not supportive of a price change.
Malting Barley Additional Value Prices (Option A)
|
State |
Price |
|
Alaska, Oregon, Washington |
$1.10/bu. |
|
Idaho |
$1.25/bu. |
