USDA Provides Flexibility for Crop Insurance Price Elections for 2002 Spring-planted Crops

USDA PROVIDES FLEXIBILITY FOR CROP INSURANCE PRICE ELECTIONS FOR 2002 SPRING-PLANTED CROPS

WASHINGTON, Jan 16, 2002 - USDA's Risk Management Agency today announced that it would provide flexibility to producers in selecting crop insurance price elections for this year because farm bill discussions continue. The outcome of Congressional deliberations could have a significant impact on commodity prices for the 2002 crop year. Therefore, RMA will not be able to announce the additional price elections by today's deadline. When RMA has sufficient information, it will announce the additional price election, as appropriate. Under no circumstances will additional price elections be announced later than July 1, 2002.

As a result of this unique situation, RMA is extending the deadline by which producers may select the additional price. Some restrictions will apply to the use of the higher price elections. If the additional prices are announced, producers will have five (5) calendar days in which to elect the minimum price announced on November 30, 2001, or the additional price election and pay the additional premium, provided that:
(1) The producer has not suffered a loss or was prevented from planting the eligible crops on or before the date that the additional price elections were announced; or
(2) The producer does not suffer a loss or is prevented from planting within ten (10) days after the date that the additional price elections are announced.

If a loss has already occurred or the planting of the crop was prevented before or within ten (10) days after the release of the additional price election, producers will not have the option to select the higher price election and the price election previously announced by RMA for the 2002 spring-planted crops will be used to adjust the producer's claim.

As a reminder, the established price elections announced on November 30, 2001, are:

Commodity	2002 Established Price
Corn	$2.00/bu.
Cotton	$0.50/lb.
Flax	$5.21/bu.
Grain Sorghum	$1.85/bu.
Rice	$6.50/cwt.
Sunflowers	$0.093/lb.
Soybeans	$4.92/bu.

If RMA is unable to determine the appropriate additional price election for the 2002 spring-planted crops by July 1, 2002, the price elections announced on November 30, 2001, will remain the applicable price elections for the 2002 crop year. Today's announcement may be found on the RMA website at www.rma.usda.gov.