2003 AB. Crop Insurance

[TOM4CWB]

Charlie;

It sure looks like you guys have been busy!

I see Significant changes for the 2003 crop year that include:

Spring Price Endorsement insurance, which protects insured Alberta farmers against significant drops in market prices between the time seeding decisions are made and crops are harvested.

Revenue Insurance coverage, which sets a floor price to protect farmers from low market prices.

GOOD JOB, now all we have to do is figure out how much this will all cost!

[henbent]

This package does sound good, finally something that makes sense for a change. I wonder if the premiums will be affordable?

[cropduster]

Tom4cwb.Just wondered if they`ve changed the Variable Price Option.Seemed they didn`t have the timing factor right.Or maybe it was just the clowns in Winnipeg that we all know and love)

[TOM4CWB]

Cropduster;

I understand that the fall adjustment period, will be a basket of the month of October. I am told that for moral hazard reasons, is is not acceptable to pick a certain day... could be a reasonable point.

It will certainly be interesting to see how the Feds and other provinces react to our new C. I. program.

Further we understand there are no offsets, which makes this program much better than the GRIP from the early 90's.

FarmTech 03 will be discussing the program tomorrow and Friday... will report back as we find out more!

[charliep]

Cropduster

Just seeking your thoughts about timing of providing the summer/fall based variable price.

This is a tough one as the last two years have shown. The issue is some date/time period has to be selected and after not only this last years but other years experience, this is a tough job - the market is the market and will react to what information it has on any given date.

A change for the new fall price setting process is to go to a more formalized system based on market signals/futures if available. Using canola as an example, fall prices will be based on average November futures during October adjusted for a basis.

I look forward to people's comments on the new crop insurance programs.