USDA agency shares projected crop prices
Projected prices 'provide a significant level of coverage,' USDA official says
By MATTHEW WEAVER
Growers who purchased crop insurance now know their basic level of coverage.
The USDA Risk Management Agency has announced the 2011 projected price for winter wheat and barley, fall canola and rapeseed and the Malting Barley Additional Value Price.
Winter wheat is projected at $7.12 a bushel. Winter barley is projected at $3.91 a bushel. Fall canola is projected at $0.183 per pound. Fall rapeseed is projected at $0.208 per pound.
Agency regional director Dave Paul said he has heard from growers happy with the projected price.
"This provides a significant level of coverage," he said. "Going into this year, producers have an opportunity to get substantial risk management protection on their fall crops."
If a producer buys insurance with upside or down price protection, coverage will increase with an increase in price or guarantees it will remain at the same level if prices decline, Paul said.
With yield protection, any shortfall below the yield guarantee will be covered at the established price.
Under Option A of the Malting Barley Price and Quality Endorsement, the Malting Barley Additional Value Price is $1.05 per bushel. Option A is for any malting barley production, while Option B is available to production grown under malting barley contracts only, according to agency documents.
Projected prices for spring wheat, barley, canola and rapeseed will be determined close to March 1, 2011.
The sales closing date for wheat in Idaho, Oregon and Washington and fall-planted barley with winter coverage was Sept. 30. The canola and rapeseed fall sales closing date was Aug. 31.
If there's any damage between the time they plant the crop and when they harvest it, producers should contact their insurance agent with a notice of loss.
In August 2011, the agency will announce the harvest price, and determine whether farmers fall below their revenue guarantee, Paul said.