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NATIONAL CROP INSURANCE SERVICES
7201 West 129th Street, Suite 200
Overland Park, Kansas 66213
January 28, 2003
FOR IMMEDIATE RELEASE
LOUISIANA ONLY
For more information contact Jan Eliassen at 757-721-0218.
The information in this release comes from data provided by USDA’s Risk Management Agency.
Farmers face risk management choices
Crop insurance deadlineAs farm disaster aid legislation moves forward in Washington, producers in Louisiana are facing a deadline to sign up for the one certain Federally subsidized disaster program --- crop insurance.
Producers of seven spring planted Louisiana crops share a February 28 deadline to sign up for Federally subsidized crop insurance, or to make any changes to their existing policies.
The seven crops are: cotton, corn, peanuts, soybeans, rice, grain sorghum, and sweet potatoes. Not all crops are insurable in every parish.
Signing up is only one of the choices farmers are facing. They must also decide what percentage of their Actual Production History (APH) to insure, and in some cases, what kind of crop insurance policy best suits their needs.
All seven crops are insurable with the standard Multiple Peril Crop Insurance (MPCI). In some parishes five crops: cotton, corn, soybeans, rice, and grain sorghum can also be insured with Crop Revenue Coverage (CRC) which insures not only against yield losses, but also against price fluctuations. Group Revenue Coverage (GRP) is available in some parishes on cotton and soybeans.
In recent years, there has been a sharp increase in “buy up” policies (those with a high percentage of APH insured.) This rise has been fueled by increased Federal subsidies towards encouraging the “buy up” option. For instance, at the 75 percent level of coverage, the government pays 55 percent of the premium cost. There has also been a growing awareness of the increased profit potential when crop insurance is used in conjunction with some form of forward pricing.
To make any of these choices, a producer must contact a private crop insurance agent before the February 28 deadline.
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