PRICE INCREASED FOR INSURED MICHIGAN PEACHES

Contact: Eric Edgington (202) 690-2539
Eric.Edgington@rma.usda.gov

WASHINGTON, September 17, 1999 - Risk Management Agency (RMA) Administrator Ken Ackerman announced today that the price election for Michigan fresh market peaches will be $11.00 per bushel. The new price represents a 76-percent increase over the 1999 level of $6.25.

"Through the hard work of the National Agricultural Statistical Service (NASS), the Cooperative State Research, Education, and Extension Service (CSREES) and members of the Michigan congressional delegation, we"ve found the data necessary to more accurately project peach prices," said Ackerman. "This major improvement of the program will help ensure that even more growers have the benefits of crop insurance protection."

Until now, peach prices reflected a 10-year average of prices reported by NASS. Prices increased when RMA shortened the number of averaged years from 10 to 5. This action was merited because peach prices are trending upward. Further, NASS was able to split out prices for fresh market peaches and those used for processing. Previously, the two categories were combined.

The increased price election is effective for the 2000 peach crop. Federal crop insurance is obtained through private insurance agents. A listing of agents may be found at the local office of the Farm Service Agency.