After the Risk Management Agency released a new methodology showing sorghum's crop insurance price elections at 97.8% of the value of corn, the National Sorghum Producers claimed a huge victory for the sorghum industry. The reason being that figure is up from only 88% last year.
The National Sorghum Producers has been working hard with RMA over the past eight years to improve price elections, and RMA's new methodology demonstrated the organization's ability to deliver tangible results to its members. For sorghum producers, this new value can mean between $20 tp $50 per acre or more in increased insurance coverage for sorghum depending on individual yields and coverage levels.
Gerald Simonsen, NSP chairman of the board, says this is going to greatly help sorghum producers manage their risk. During the 2008 Farm Bill debate, NSP worked with Congressman Jerry Moran, R-Kan., and others to include a provision to develop a new methodology that was replicable and transparent. The new methodology posted by RMA incorporates a time period of 10 years to calculate the price elections. This new crop insurance price election will be in effect for the 2010 crop year.
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