News Archives

Contact: John Shea, 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