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| We have already seen the premium comparison between CRC and RA with the same price limit (200% upside). 2009 wheat coverage includes both CRC and RA offers using the same price restrictions. The result was exactly the same as in the past, you must look at each county and using different aph's to determine the less expensive product.
As for choosing RA over CRC (and GRIP) last spring, I agree with coup, the jury is still out on this one (for corn). If our harvest lows are occurring now, we are still well above the low price limit for CRC and GRIP, and if the market recovers into the fall, the November average of December futures (period used by RA for corn price discovery) may be higher than October, meaning a revenue loss could occur with CRC (and indemnity payment) that we might miss out on with RA.
As for soybeans, we are currently under the $10.36 "cup" for CRC and GRIP, so RA appears to be the better product (between CRC and RA, not necessarily GRIP), unless we average at or above $10.36 for the month, at which time the less premium coverage would work best.
One last thing to remember, RA is not available in several states, so CRC is the only option. Also, RA is not available on some crops, such as grain sorghum, again making CRC the only available coverage.
just some rambling while waiting to get back to beans,
Rob | |
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Fall Harvest Price
