New crop insurance opportunities
for corn and soybean producers

NEW YORK - New York State Agriculture Commissioner Patrick Hooker advised New York's corn and soybean producers to carefully consider new provisions of the 2009 Crop Revenue Coverage policy. The new provisions include a new price change limit that doubles the base price and a price discount for those that consolidate their insurance units.

As the March 16 deadline for crop insurance approaches, it is critical that New York growers understand all the new requirements and provisions of federally-subsidized crop insurance programs. Corn and soybean growers in particular have some attractive options this year with Crop Revenue Coverage that extend protection from yields to market prices. The time is now to educate yourself on these opportunities and consult with a qualified crop insurance agent.

United States Department of Agriculture's Risk Management Agency announced the base price for corn at $4.04 per bushel and soybeans at $8.80 per bushel, which provide the new price change limits for this years Crop Revenue Coverage and are based on the Chicago Board of Trade averages.

The Crop Revenue Coverage policy does not have a down price change limit if the market declines. Therefore, if the October price is higher than the February price, the guarantee is recalculated using the higher price, up to double the spring price and no additional premium is charged for the increased protection.

Also offered in 2009 is a premium price discount of up to 80 percent for producers who qualify for separate insurance units, but elect to insure all of their corn and/or soybeans as a single consolidated insurance unit. This option, called an enterprise unit, may not result in a loss payment, unless the loss is severe enough to cause the revenue from the consolidated enterprise unit to fall below the insurance guarantee.

Crop Revenue Coverage for corn in New York is available in all 52 counties. For soybeans, Crop Revenue Coverage is available in 23 counties including Allegany, Cattaraugus, Cayuga, Chautauqua, Cortland, Erie, Genesee, Jefferson, Livingston, Monroe, Montgomery, Niagara, Onondaga, Ontario, Orleans, Oswego, Schoharie, Schuyler, Seneca, Tompkins, Wayne, Wyoming and Yates Counties.

Coverage in non-insured counties may be obtained through written agreement requested before March 16. As required by the new farm bill, most crops, including corn and soybeans, must be enrolled with crop insurance or FSA's Non-Insured Disaster Assistance Program in order to be eligible for crop disaster payments. Farmers who purchase coverage at higher levels will receive increased guarantees for disaster protection.

In addition to corn and soybeans, the crops covered by crop insurance policies with a March 16 deadline include dry beans, barley, oats, fresh market sweet corn, grain sorghum, green peas, potatoes, spring forage seeding, processing beans, processing sweet corn.

Apple and grape producers who missed fall crop insurance deadlines can restore eligibility for crop disaster payments by enrolling in the whole farm revenue protection policy, Adjusted Gross Revenue-Lite, by March 16.

The New York Crop Insurance Education Program is intended to provide New York farmers practical, timely, up-to-date information on which to make an informed decision about integrating crop insurance into their risk management planning. The Program is administered by the New York State Department of Agriculture and Markets and the United States Department of Agriculture's Risk Management Agency partnering with the Farm Service Agency, Cornell Cooperative Extension, Cornell University and others.

For more information, consult the New York Crop Insurance Education Program Web site at www.agmkt.state.ny.us/AP/CropInsurance.html or call New York State Department of Agriculture and Markets at (800) 554-4501.

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