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| RMA has codified their revenue product prices as announced today, May 29, 2008.
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 beginning with winter wheat sales ending on September 30, 2008.
All revenue policies will have unlimited downside price protection
All policies will have 200% upside price limit from Expected price
This will assist in creating marketing plans with Forward Contracting. There still will be the basis risk between the "Spot" price and the Asian Option price discovery but no difference between products.
So when doing product comparisons there will be one less variable to consider to evaluate the premiums. Look to see if product premiums are close together.
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Federal 2009 Revenue Product Prices
