RMA News Gets A Bit Scary

The Risk Management Agency is in the process of making the new Farm Bill work and they have just posted the federal crop insurance prices on spring crops and - at least for corn growers - the news is a little scary. NAFB's Seanica Otterby has more.

OTTERBY: The Risk Management Agency has Soybeans are priced at 11-dollars and 36-cents and spring wheat at 6-51 - but corn is set at just 4-62.  For many producers - there is very little space between that price and the cost of production. The advice from numerous ag economists is to buy higher levels of revenue coverage.  The urgency is that those decisions must be made by March 17th - the deadline for signing up for crop insurance on spring planted crops for much of the country.  It is also the deadline for making any changes to existing policies. One recent farmer survey indicated that fertilizer and chemical costs were being closely examined.  At the same time - those same farmers were planning to make larger investments in crop insurance.

RMA provides crop insurance to American farmers and ranchers. Private-sector insurance companies sell and service the policies. RMA develops and/or approves the premium rate, administers premium and expense subsidies, approves and supports products, and reinsures the companies. RMA also sponsors educational and outreach programs and seminars on the general topic of risk management.

That's today's Line On Agriculture. I'm Greg Martin on the Ag Information Network.