WASHINGTON, Nov. 4, 2013 – USDA’s Risk Management Agency (RMA) released their harvest price levels today, allowing growers who purchased revenue assurance with the harvest price option to compare with spring-projected prices and estimate whether or not they may be eligible for insurance claims.
The corn harvest price is $4.39/bu., a sharp drop of $1.26 compared to the spring price of $5.65/bu. The soybean harvest price is $12.87/bu. – the same as the spring price.
Revenue Assurance with the harvest price option (RA-HP) is revenue insurance that farmers purchase in an attempt to protect against low prices, low yields, or a combination of the two.
With harvest prices dropping, some corn growers who purchased 80 percent or higher levels of coverage and who have average corn yields might be eligible for insurance claims. That is because the harvest price for corn is 80 percent below the spring guarantee.
But it’s a different situation for soybeans, because the spring and fall guarantees are equal. Only farmers with a yield loss may be eligible for a payment. But keep in mind that there are a lot of variables and your crop insurance agent can provide specific details.
As of Nov. 4, RMA reports that growers purchased over 2.1 million crop insurance policies covering over 292.3 million acres.Thus far, crop insurance indemnities totaled about $5.2 billion dollars – a far cry from last year when disastrous weather across much of the Corn Belt and Southern Plains destroyed crops and resulted in a record $17.4 billion in indemnities.
For the full 2013 Crop Year (CY) Common Crop Insurance Policy Harvest Prices and Group Risk Income Protection (GRIP) Harvest Prices, click on the link below:
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