Revenue Insurance Expanded for 2000 Crop Year

January 12, 2000

The form of crop insurance known as "revenue assurance" is being expanded for the 2000 crop year. The action by USDA's Federal Crop Insurance Corporation follows an expanded program in 1999 as well.

For the 2000 crop year, revenue assurance is expanded for corn and soybeans in Indiana; for spring wheat in Idaho, Minnesota and South Dakota; for feed barley and canola/rapeseed in Idaho and North Dakota, and for sunflowers in North Dakota. The maximum coverage level for enterprise and whole-farm units is increased to 85%.

Last year, revenue assurance for corn and soybeans was expanded into Illinois, North and South Dakota and Minnesota and spring wheat was approved as a new crop for North Dakota. Producers would select a coverage level up to 80% for whole-farm units and a fall harvest price option that used the greater of the projected harvest price or the fall harvest prices in determining the revenue guarantee.

The program was changed to use the Chicago board of Trade futures for crop prices rather than using the county crop prices. The CBOT futures and the actual production history were the basis for determining the revenue guarantee and revenue assurance premium rates.

USDA published the action in the Jan. 11 Federal Register, beginning on page 1678.