Dry Bean Revenue Protection Coming to Michigan
Certain counties in Michigan are going to be have the ability to purchase a new Revenue Policy on their dry beans this year! This is exciting news, as farmers who grow one of the five approved bean types will finally be able to protect their crop against fluxuations in market prices, and not just low yields like in years past. This is also a pilot program which will expire at the end of the 2016 crop year unless cancelled early or extended by FCIC, so now is the time to take advantage of this product in case it disappears.
These are the five bean varieties which qualify for the new RP policy:
Dark Red Kidney Beans
Pea (Navy) Beans
Small Red Kidney Beans
All other dry bean varieties must also be elected as RP but will default back to the YP coverage you're used to.
These are the counties where the new RP policy is available:
Alcona, Alpena, Arenac, Bay, Clinton, Delta, Eaton, Genesee, Gladwin, Gratiot, Huron, Ingham, Ionia, Iosco, Isabella, Kalamazoo, Kent, Lapeer, Mecosta, Midland, Montcalm, Ogemaw, Presque Isle, Saginaw, Sanilac, Shiawassee, St. Clair, Tuscola.
As this is a pilot program, there are many ways that this policy is unique to itself. The basic way we calculate indemnities is the same for other crops like your corn ans soybeans, but the way prices are collected greatly differs from those crops. The projected price for the approved bean types will be a value approved by RMA determined from analyses of the contracts for purchase of dry beans by business enterprises in the region for the current crop year. The harvest price for the approved bean types will be a value approved by RMA determined from analysis of prices received by growers for each week of publication beginning on the first business day of September and ending on the last business day of November as reported by the Bean Market News. If these methods are not able to determine a price than the price will be set by RMA.
If you have any questions about this new policy please contact your agent.