Alberta Crop Insurance Coverage Prices

[charliep]

Just a note the Alberta crop insurance coverage prices are out.

http://www.afsc.ca/resources/PDF/RiskManagement/Insurance/2007%20Spring%20Insurance%20Prices%20(VPB%20Crops) .pdf

I will note the only spring crop below revenue insurance levels by any big margin is durum (both standard and high protein option).

Will leave spring price endorsement comments till early April unless I get asked questions.

[rodb]

Charlie

Have you any information on the RIC prices?

Looks like the boat is sailing on Risk Management.

[charliep]

The basic principle of the revenue insurance program came from the loan deficincy program in the US. The idea was to provide a mininmum price/revenue.

I will note the current US prices are well above their loan deficiency payments - no payments here. Similarly, I suspecct the US payments under their other programs (both direct and counter cyclical) will be down or zero this year with the higher prices.

Revenue insurance in Alberta will be no different - no payouts as long as prices stay high. Spring price endorsement will still be in play but every farmer will have to look at the numbers and the impact of the 10 % trigger.

Will the program have to be reviewed in the future? A decision at a different level from me but I suspect yes.

[charliep]

Got asked another question which made me look up information on the US farm programs and thought I should post a link here.

http://www.usda.gov/documents/DIRECT_AND_%20COUNTER_CYCLICAL_PROGRAM.pdf

Will also note the US is also going over their farm programs with a new farm bill on the horizon (unless current one extended).