Anderson Offers Crop Insurance Tips and Projected Price Outlook for WheatThu, 03 Sep 2015 20:00:42 CDT
As farmers prepare to plant their wheat crop, they have some important choices to make. Farmers have until September 30th to sign up for crop insurance. On this weekend's edition of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson goes through the policy options. Farmers will have to choose between a yield protection or a revenue protection policy. Just like the name implies, yield protection protects a farmer from yield loss, as the price is already set. With the revenue protection option, Anderson said this protects farmers from both yield loss and changes in commodity prices. Under that option, he said it's possible to have a yield loss and prices go up and farmers could get a higher payment under revenue protection, than just under a yield loss policy.
In preparing for a new crop year, farmers will also want to make sure their farm records at the crop insurance agent's office matches the records keep through the Farm Service Agency. If those records don't match, Anderson said there is a possibility they have a loss, that they won't get paid.
With so many farmers effected by drought in recent years, the U.S. Department of Agriculture has offered a yield exclusion option for winter wheat. This allow farmers to exclude low yields in exceptionally bad years from their production history. By removing these bad years in calculating yield for crop insurance coverage, Anderson said that will raise their guaranteed yield and result in a higher payoff.
In making the best crop insurance choice, Anderson recommends farmers and land owners find a good crop insurance agent. He said farmers need an agent that know the policies, can take farm records, evaluate each alternative and can show the potential results of each option. That will help farmers in making a better, educated decision.
In making those insurance choices today, Anderson said if wheat prices remain the same by June 2016, then yield protection will work. If wheat prices go higher or lower, he said then the revenue option will offer the best protection.
If farmers still have grain in the bin, wheat prices look pretty grim. Wheat prices were around $6 at harvest and have been on a steady decline, ever since. If farmers have wheat to market before the end of the year, Anderson is predicting wheat prices to be around $4.60 in December. For harvest 2016, he predicts wheat prices to be around $5. In forward contracting, he said prices are ranging from $4.50 to $4.75.
SUNUP can be seen on OETA across the state of Oklahoma- Dr. Anderson's segment on the markets is one of the standard features of this weekly show from Oklahoma State University. Catch SUNUP on-line through the OSU website by clicking here or through YouTube by clicking here.
This week on SUNUP, we make the third stop of our 2015 fair series at the Pontotoc County Free Fair in Ada. We start with advice for soybean producers across Oklahoma from OSU's new Extension Cropping Systems Specialist, Josh Lofton.
-- Then, John Weir introduces us to a new mobile device app to help producers track plant regrowth following a prescribed burn.
-- In the Mesonet report, Al Sutherland and Gary McManus show us the area where the flash drought is growing in Oklahoma and the soil moisture conditions that are leading to it.
-- Also, Derrell Peel discusses how the changing international trade conditions could impact future cattle prices.
-- Kim Anderson talks about crop insurance and wheat prices.
-- In Cow-Calf Corner, Glenn Selk explains how to reach cattle body condition goals moving into colder weather.
-- Next, we see how a 4-H club from Tulsa is getting a special college experience with Jeff Sallee, Jennifer Hernandez Gifford and Rita Flores.
-- Finally, a heartwarming story from the Pontotoc County Horse Show.
Catch SUNUP: Saturdays at 7:30 a.m. & Sundays at 6 a.m. on OETA-TV
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