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Farmers face Sept. 30 deadline to enroll or modify fall crop insurance protection

August 09, 2005

McConnellsburg, Pa. ? John K. Johnston, county executive director for USDA's Farm Service Agency in Fulton County, announced that producers have until Sept. 30 to enroll or modify their current crop insurance protection choices on fall-seeded wheat and barley and forage production for 2006.

For barley and wheat protection, producers can choose from 50 to 85 percent of their actual production history. When production ? after adjusted for poor quality ? is less than the insurance guarantee, the payment rate is $2.35 or $3.50 per bushel, respectively.

Crop revenue coverage is also available for wheat. This plan provides a revenue guarantee that is determined using board of trade prices. Loss payments can result from low yields, poor quality and/or price fluctuations.

Forage productions protection can be purchased for yield fluctuations under the production history or group risk plans. Coverage is broadly available for alfalfa and alfalfa/grass mixtures at from 50 to 75 percent of the producer's yield history.

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The group risk plan is available for all classes of hay in 29 counties, with coverage choices from 65 to 90 percent of the county average yield. Losses are paid when the county average for the current year is less than producer's selected level of coverage.

Forage producers can also purchase gross revenue protection based on their previous five-year average. This plan covers all classes of hay as well as the gross sales of almost all other agricultural commodities produced on the farm. Protection is provided against low revenue caused by natural disasters or low prices.

Johnston said this plan works best when forage and other commodities are grown for sale. "It could have been a valuable risk management tool for many producers in 2004, whose forage production and quality and expected revenue were severely reduced by excessive rains," he said.

Pennsylvania will cost-share the producer's premium for crop insurance protection.

Producers are encouraged to contact a crop insurance agent for coverage details before the Sept. 30 deadline.

For further information, contact the Fulton FSA Office at 216 N. Second St., McConnellsburg, PA 17233 or phone 717-485-3231, ext. 2

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