AB Spring Crop Insur Prices????

[northfarmer]

These are now posted at their site, I was frankly suprised how low they are given what has happended in the markets the last couple of months....

2cwrs $5.58
barley $3.70
canola $9.53

these values are way off the the market numbers and even the pros from the cwb on the da grain....is this a positive for likely payouts under the VPB/SPE??

[charliep]

Should likely stay low but will note the process occurred about a month to six weeks ago. At that point, a lot of discussion about how much weather premium was in the market/impact on actual values through the summer/fall.

Since then, new crop wheat (MGE) and canola futures are both up in the range of $90 to $100/tonne. Western barley is up by about $25/tonne (similar to new crop CBT corn futures).

Would prices be different if the forecasting process occurred today?Likely yes. The process sets out the dates that decisions need to be made by with Saskatchewan and Manitoba actually ahead of Alberta.

Will note that variable price benefit is a standard feature of the Alberta insurance. Implication is that the coverage prices (if you are in a claims situation) can increase by 50 % depending on the fall calculation.

With a note still 2 months to make a decision on the Spring Price Endorsement, these coverage prices mean that the SPE program will not be that usefull (better to use other risk management products).