Price volatility fuels interest in crop insurance - October 1 deadline for fall planted crops

NATIONAL CROP INSURANCE SERVICES

8900 Indian Creek Parkway, Suite 600

Overland Park , KS 66210

FOR IMMEDIATE RELEASE
September 5, 2007
For more information please contact Jan Eliassen at 410-778-0120 or Laurie Langstraat (913-685-2767)

Price volatility fuels interest in crop insurance
October 1 deadline for fall planted crops

OVERLAND PARK, KAN…This summer’s extreme weather has compounded what was already a high risk season for many farmers even before they began planting.

Now, those who grow winter wheat, oats, barley, forage production, alfalfa seed, and many other fall planted crops will have a chance to act on what they have learned from the experiences of corn and soybean growers this year.

Between now and October 1 (moved to Oct. 1 because Sept. 30 falls on a Sunday) farmers across most of the country will have a chance to sign-up for federally subsidized crop insurance on their fall planted crops.

For many, the crop insurance decision will be fueled by the increase in grain prices, and the increased risks imposed by price volatility. After all, a 25 percent price change on $4.00 corn is a lot more money than a 25 percent change in $2.00 corn.

Corn growers who invested in high levels of revenue insurance coverage, like Crop Revenue Coverage (CRC), last spring are looking pretty smart right now. Many of them experienced drought losses and they saw the price of corn drop below the price they locked in with their crop insurance coverage.

Now, with wheat prices pushing $6.00 during the month long period when the CRC and Revenue Assurance prices are set, wheat growers have a lot of money on the line if that price changes dramatically between now and harvest.

As one farmer put it, “We are not insuring bushels of yield, we are insuring dollars of income.”

October 1 is also the deadline for making any changes to existing policies. Not all crops nor all types of insurance coverage are available in every county. For more information, check with a private crop insurance agent well before the October 1 deadline.

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NATIONAL CROP INSURANCE SERVICES

Price volatility fuels interest in crop insurance October 1 deadline for fall planted crops

Price volatility fuels interest in crop insurance
October 1 deadline for fall planted crops