Contact: Shirley Pugh (202) 690-0437
NEW PRICE CHANGE LIMITS FOR REVENUE PRODUCTS
WASHINGTON, May 29, 2008 -
RMA today announced new price change limits for the Crop Revenue
Coverage (CRC), Group Risk Income Protection (GRIP), and Revenue Assurance (RA) plans of insurance,
effective the 2009 crop year.
A Special Provisions of Insurance (SPOI) statement has been included in the 2009
crop year actuarial filing for all counties and all crops that pertain to these three insurance plans.
For CRC and GRIP, the SPOI statement replaces the current dollar limitations on price movement with a
200-percent price change limit between the base or expected price, and the harvest price. There will
no longer be any downward price limitations for either plan.
For RA, the SPOI statement sets a
200-percent price change limit between the projected harvest price and
the fall harvest price, and there will be no downward price change limit.
The price change limits provide consistency across
all three insurance plans, regardless of the level of commodity prices.
For CRC and GRIP, use of a percentage price change limit for upside price movement and elimination
of the price change limit for downside price movement will allow prices to
more accurately reflect the changing markets.
For RA, establishing the price change limit for upside price movement will have negligible impact, as
upside price movement has not exceeded 200 percent as of the 2007 crop year.
Jan 27, 2009 update: Calculating New Price Change
Limits for Revenue Products
Frequently Asked Questions:
Group Risk Income Protection
Revenue Assurance
Policies and Provisions:
Crop Revenue Coverage
Group Risk Income Protection
Revenue Assurance
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