What You Need To Know About Crop Insurance

For young growers, securing crop insurance can seem like a daunting task with all of the information available. Fortunately, there are options at your disposal through USDA’s Risk Management Agency (RMA), which manages the Federal Crop Insurance Corporation, providing crop insurance products to growers.

Flooded vegetable field in South Florida
Photo courtesy of FDACS

Through the Federal Crop Insurance Program, approved insurance providers (AIPs) sell and service federal crop insurance policies in every state through a public-private partnership with RMA. RMA then backs the AIPs who share the risks associated with catastrophic losses due to major weather events.

RMA Associate Administrator Tim Gannon offers young growers four pointers to keep in mind about federal crop insurance and what mistakes they should avoid.

1. People New To Farming And Ranching Can Get Special Considerations

With its beginning farmers and ranchers provisions, USDA continues to serve the next generation of growers by improving access to land, capital, and risk management tools, Gannon says. Those who qualify for the beginning farmer and rancher designation, receive an extra 10% in premium subsidy, meaning the premium for crop insurance paid out of pocket by the grower is less.
Furthermore, qualifying beginning growers do not have to pay an administrative fee for their policy, may use the production history of the previous grower from that farm, and are eligible for a higher substitute yield adjustment used for the years they did not have a history of growing the crop to help determine the expected yield.

2. Consider Going Organic

Organic agriculture is experiencing remarkable growth in the U.S., seeing $39 billion in retail sales last year. The RMA oversaw $649.7 million in federal insurance coverage provided nationwide in the 2015 crop year for certified organic crops and those transitioning to certified organic.

In addition to the same opportunities for crop insurance that are available to non-organic growers, RMA has established organic prices for 57 crops that more accurately reflect the higher prices organic growers receive for their crop.

Also, for more than 60 crops, organic growers and growers transitioning to organic practices may now use their contract prices to cover an amount of liability that is more reflective of the actual value of their crop through the use of RMA’s Contract Price Addendum. Whole-Farm Revenue Protection coverage also is available to organic crop growers, Gannon adds.

3. Understand Your Coverage And The Covered Causes Of Loss

Causes of loss are crop specific and can change depending on the crop. It is best to consult the specific crop provisions for more information regarding covered causes of loss, he says.
Noteworthy causes of loss include:
• Adverse weather conditions;
• Failure of the irrigation water supply due to a specified cause of loss that also occurs during the insurance period;
• Fire;
• Insects, but not damage due to insufficient or improper application of pest control measures;
• Plant disease, but not damage due to insufficient or improper application of disease control measures; and
• Wildlife.

4. Know Your Dates

Adhere to the deadlines in the Federal Crop Insurance Program.
Sales closing date: This is the date an application must be filed and is the last date you may change your crop insurance coverage for a crop year.
Acreage reporting date: This is the date you are required to submit your acreage report.
Earliest planting date: This is the initial planting date, which is the earliest date you may plant an insured agricultural commodity and qualify for a replanting payment, if such payments are covered by the policy.
Final planting date: This is the date a crop must initially be planted to be insured for the full production guarantee or amount of insurance per acre.

5 Crop Insurance Mistakes To Avoid

Topics: , , , ,

Leave a Reply

GenNext Growers Stories
GenNext Growers
January 21, 2017
$8.8M Available to Support Ag Programs at Hispanic-Serving Institutions
Grants designed to attract, retain students in agricultural fields. Read More
Fruits
January 19, 2017
Funding Available to Improve Ag, Food Sciences Facilities at Land Grant Schools
USDA announces $18.9 million for ag education at 1890s land-grant colleges and universities. Read More
GenNext Growers
January 18, 2017
$858,000 in Grants to Encourage Careers in Agriculture Science
Funding to invest in programs that educate, promote science in the classroom. Read More
cash money in hand
GenNext Growers
January 17, 2017
9 Financial Resolutions to Boost Your Farm’s Bottom Line
If a goal for the new year includes increasing profitability, there are ways you can better manage your business. Read More
Basic tractor on the horizon
GenNext Growers
December 16, 2016
What to Know When Purchasing New or Used Farm Equipment
Prepare to ask as many questions as possible to determine whether it will serve your operation in the long term. Read More
GenNext Growers
December 15, 2016
Study Says Young Growers Seek More Information on Business, Technology
Automation and data access on smart phones among key interests. Read More
GenNext Growers
December 11, 2016
California Agricultural Leadership Program Announces Selection Of New Class
Twenty-four individuals have been selected for Class 47 of the California Agricultural Leadership Program, an advanced leadership development experience for Read More
The Latest
GenNext Growers
February 16, 2017
Young Start-Up Hort Tech Companies Honor…
Western Growers Center for Innovation & Technology Scholarships promote sustainability. Read More
GenNext Growers
February 16, 2017
Young Farmer Success Act Reintroduced to…
Bill to add young growers to Public Service Loan Forgiveness Program. Read More
GenNext Growers
January 26, 2017
New Washington State University Program …
The Spark program highlights opportunities in agriculture for minority, high school students. Read More
GenNext Growers
January 21, 2017
$8.8M Available to Support Ag Programs a…
Grants designed to attract, retain students in agricultural fields. Read More
Fruits
January 19, 2017
Funding Available to Improve Ag, Food Sc…
USDA announces $18.9 million for ag education at 1890s land-grant colleges and universities. Read More
GenNext Growers
January 18, 2017
$858,000 in Grants to Encourage Careers …
Funding to invest in programs that educate, promote science in the classroom. Read More
GenNext Growers
January 17, 2017
9 Financial Resolutions to Boost Your Fa…
If a goal for the new year includes increasing profitability, there are ways you can better manage your business. Read More
GenNext Growers
December 16, 2016
What to Know When Purchasing New or Used…
Prepare to ask as many questions as possible to determine whether it will serve your operation in the long term. Read More
GenNext Growers
December 15, 2016
Study Says Young Growers Seek More Infor…
Automation and data access on smart phones among key interests. Read More
GenNext Growers
December 11, 2016
California Agricultural Leadership Progr…
Twenty-four individuals have been selected for Class 47 of the California Agricultural Leadership Program, an advanced leadership development experience for Read More
GenNext Growers
December 4, 2016
New Loans Available For Small, Beginning…
USDA recently announced streamlined guaranteed Loans and additional lender category for small-scale operators. Read More
GenNext Growers
November 30, 2016
Virtual Conference Designed For New, Beg…
National Farmers Union to present a conference that is entirely web-based. Read More
GenNext Growers
November 19, 2016
Agriculture’s Next Generation Aimi…
University Of Florida program puts feeding a rapidly growing population in the hands of students. Read More
GenNext Growers
November 17, 2016
Deadline Nearing For 2017 Almond Leaders…
Program dedicated to preparing next generation of industry leaders. Read More
GenNext Growers
November 17, 2016
Expert Answers Questions About Making Yo…
Returning to the family farm is a big step for both family members on the farm and those returning home. Read More
GenNext Growers
October 19, 2016
10 Suggestions For Making Your Return To…
Blood may be thicker than water, but also it could put business interests in the red, if you let it. Read More
GenNext Growers
September 19, 2016
What You Need To Know About Crop Insuran…
Learn the steps to protect your farm against major losses. Read More
GenNext Growers
September 18, 2016
Seminar To Be Held For Aspiring Farmers
Program to help new farmers understand first steps and necessary decisions to make. Read More