Extension Communications
3614 Administrative Services Building
Ames, Iowa 50011-3614
(515) 294-9915
2/8/99
Contacts:
William Edwards, Extension Economics, (515) 294-6161
Treva Blumenshine, Extension Communication Systems, (515)
294-5672
Changes Announced for Crop Insurance in 1999
AMES, Iowa -- The U.S. Department of Agriculture (USDA) recently announced the price forecasts that will be used to calculate Multiple Peril Crop Insurance (MPCI) loss payments in 1999. Each bushel of loss will be paid at a maximum rate of $2.10 for corn, $5.25 for soybeans, $1.25 for oats, $1.95 for grain sorghum and $3.30 for wheat, according to William Edwards, Iowa State University Extension economist. "Producers can choose coverage based on 55 to 100 percent of these prices," he said.
Several types of revenue insurance policies also are available to Iowa crop producers. For 1999 the maximum revenue guarantees that can be purchased will depend on the average futures market prices during the month of February, according to Edwards. "This is a change for Revenue Assurance (RA) policies, which previously used Farm Service Agency posted county prices for corn and soybeans," he said.
Crop Revenue Coverage (CRC) policies now include an optional coverage feature in which the prices used to calculate the revenue guarantee can be increased by up to $.50 for corn and up to $1.00 for soybeans. Both CRC and MPCI yield insurance are now offering guarantees based on up to 85 percent of the farm's proven yield in 16 southeast Iowa counties, according to Edwards.
RA policies will offer producers the option of automatically increasing their revenue guarantee if the market price increases from February to harvest time in 1999, according to Edwards. This is a standard feature in CRC contracts.
Crop producers should schedule an early visit with their crop insurance agent to learn more details about their options for 1999. For more information, contact your local ISU Extension county office.
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