Risk Management Agency Program Announcement

Contact: David Wright (816) 926-7216
David.Wright@rma.usda.gov

WASHINGTON, Nov 30, 2001 - USDA's Risk Management Agency today announced the established price elections for most 2002 crop year spring crops insured under the federal crop insurance program. Price elections are the basis of crop insurance premiums that help farmers manage risk throughout the growing season.

Price elections are required to be announced today, however, these levels can be revised upward (but not lowered) when the 2002 national commodity loan rates are determined and announced later this year. Revisions also could occur if Congress alters loan rates for the 2002 crops before January 15, 2002.

The 2002 established price elections for the following crops are:

Commodity	2002 Established Price
Corn Cotton Flax Grain Sorghum Rice Sunflowers Soybeans	$2.00/bu. $.50/lb. $5.21/bu. $1.85/bu. $6.50/cwt. $.093/lb. $4.92/bu.

The price elections for each crop is required by the law to be "no less than" the average expected market price for the marketing year. In determining expected prices, RMA analyzes beginning and ending stock levels, estimated planted and harvested acres, yields, utilization, export projections and other economic forecasts by USDA's Economic Research Service. However, in recent years some crop price elections have considered the effect of the Commodity Credit Corporation loan rate in determining the expected market price, especially when prices are well below loan rates.

The Risk Management Agency (RMA) will continue to monitor developments over the coming weeks and may provide an additional "higher" price election for these crops by January 15, 2002. If an additional "higher" price election is announced, the insured must affirmatively elect the additional "higher" price election prior to the sales closing date.

The price elections determined and announced as of today may be found on the RMA website at www.rma.usda.gov. Price addendums are located under Participation Data.