HARRISBURG, Pa. — Producers who experienced a revenue loss on 2011 fall seeded wheat and spring and fall seeded barley can now calculate if they are eligible to file a crop insurance claim using recently announced harvest prices.
Prices
The harvest price for wheat is $8.67 per bushel and barley is set at $6.85 per bushel. The projected prices at planting time were $8.20 for wheat, $6.33 for fall seeded barley and $5.37 for spring seeded barley.
“Some Pennsylvania wheat and barley producers experienced a tough crop year due to late spring freezes and drought,” said Agriculture Secretary George Greig. “Those with revenue losses will now be eligible to file crop insurance claims to help them recover financially before the next growing season.”
Producers can determine if they experienced a crop revenue loss eligible for indemnity payments by using the following calculations:
Revenue Protection Policy:
Number of acres times number of bushels per acre (actual production history yield) times level of crop insurance coverage (percentage) times the higher of projected or harvest price equals revenue guarantee.
Example:
For 100 acres of wheat at 60 bushels per acre APH at 70 percent level of coverage, 100 acres times 60 bu./acre times .70 times $8.67 equals $36,414.
If 3,000 bushels were produced, the revenue to count toward the guarantee is $26,010 (3,000 bushels times $8.67 per bushel), resulting in an indemnity payment of $10,404 ($36,414 – $26,010).
Revenue Protection with Harvest Price Exclusion Policy:
Number of acres times number of bushels per acre (actual production history yield) times level of crop insurance coverage (percentage) times spring projected price equals revenue guarantee.
Example:
For 100 acres of wheat at 60 bushels per acre at 70 percent level of coverage, 100 acres times 60 bu./acre times .70 times $8.20 equals $34,440.
If 3,000 bushels were produced, the revenue to count toward the guarantee is $26,010 (3,000 bushels times $8.67 per bushel), resulting in an $8,430 ($34,440 -$26,010) indemnity payment.
File a written notice of loss immediately if you experience a revenue loss due to an insurable cause. Contact your crop insurance agent with questions.
For more information about Pennsylvania’s crop insurance education program, call 717-705-9511 or visit www.agriculture.state.pa.us and click on “Programs.”
