USDA ANNOUNCES 2012 PRICE ELECTIONS FOR CROP INSURANCE

ANNAPOLIS, MD (March 5, 2012) – The U.S. Department of Agriculture (USDA) Risk Management Agency has announced price elections for 2012 spring planted crops.  These prices allow producers to lock in the spring price and guarantee at least that level of revenue, depending on what level of insurance they buy.

With many analysts predicting increases in the world inventory of corn and soybeans by harvest time, locking in the spring price at high buy up levels for 2012 is being advised.

“I encourage farmers to be on top of their risk management decisions going into this season,” said Maryland Secretary of Agriculture Buddy Hance. “A little time with your crop insurance agent now, will pay off later.”

For spring planted crops, with a March 15 deadline for making policy changes, the prices are based on the February monthly average of the Chicago Board of Trade futures.

The 2012 spring price elections for selected crops are: grain corn is $5.68 per bushel, organic corn is $7.99, corn for silage is $50 per ton, soybeans insured for grain is $12.60 per bushel, and organic soybeans are $20.05.

For example: Producers with a conventional corn price of $5.68 per bushel can purchase protection for a farm with a 150 bushel actual production history (APH) yield ranging from $234 to $727.

Producers insuring multiple or large farms may also be able to insure using “enterprise units” to receive up to a 50 percent premium discount. Enterprise units may reduce premium cost by up to 50 per cent, which may allow them a higher coverage levels.

Producers 2012 spring planted crops must sign up for federally insured crop insurance, or make any changes to existing polices by March 15. A list of agents can be found at:  www3.rma.usda.gov/apps/agents.