USDA announces new crop insurance option

USDA announces new crop insurance option

Risk-management program provides coverage for operating margins.

The USDA Risk Management Agency (RMA) has announced the availability of a new crop insurance coverage option that provides producers with coverage against an unexpected decrease in their operating margin. Starting in the 2016 crop year, the new margin protection plan will be available in addition to underlying crop insurance policies in select counties starting for corn, rice, soybeans, and spring wheat.

The plan provides coverage that is based on an expected margin, which is the expected area revenue minus the expected area operating costs, for each applicable crop, type and practice. Margin protection is area-based coverage and may not necessarily reflect a producer’s individual experience. The margin protection plan can be purchased by itself, or in conjunction with Yield Protection or Revenue Protection policy.

Margin protection will be available for rice in select Arkansas, California, Louisiana, Mississippi, Missouri and Texas counties. Coverage is available for spring wheat in select Minnesota, Montana, North Dakota and South Dakota counties. Corn and soybeans in all Iowa counties will be eligible for margin protection insurance.

A producer may choose coverage from 70-90% of their expected margin. A higher level of coverage will have a higher premium rate. The catastrophic (CAT) level of coverage is not available under this policy. The last day to purchase a margin protection policy for corn, soybeans, and spring wheat is Sept. 30, 2015. The last day to purchase margin protection for rice is the same as the sales closing date for the underlying rice insurance policy, which varies by county. Maps of eligible counties and other resources can be found on the margin protection web page.

Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net.

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