By Archie Flanders, Agricultural Economist
The Risk Management Agency (RMA) has announced projected prices for 2016 crop insurance coverage. Projected prices for Arkansas are presented in Table 1. Crop insurance represents additional expense, but low crop prices have increased the vulnerability of farms to the financial effects of adverse weather. In addition to protection from production and revenue losses, crop insurance offers protection from losses due to prevented planted and replanting a crop. February 28 is the sales closing date for Arkansas spring planted crops. The Cooperative Extension Service has information and decision aids for evaluating crop insurance alternatives. Crop insurance information is available at http://www.uaex.edu/farm-ranch/economics-marketing/farm-planning/risk-management.aspx
1RMA will offer differentiated (higher) 2016 projected prices for medium/short grain rice (both conventional and organic). RMA will compute the higher medium/short grain prices by applying a medium/short grain factor to the long grain projected prices. Computations require USDA price data which is not available until the last business day of February.