Market News & Headlines >> Changes to Crop Insurance
USDA’s Risk Management Agency plans to make some changes to crop insurance, as indicated by the farm bill:
- Specific to beginning farmers/ranchers starting with the 2015 crop in most cases and all by 2016, the $300 administrative fee that applies to catastrophic coverage will be waived. New farmers’ premium support rates will increase 10 percentage points during their first five years of farming. Beginning farmers will rece3ive a greater yield adjustment when yields are below 60% of the applicable transitional yield.
- Producers will be able to have enterprise units for irrigated and non-irrigated crops, give farmers and ranchers the ability to purchase different levels of coverage for a variety of irrigation practices,
- Starting this fall of 2014, producers in Iowa, Minnesota, Montana, Nebraska and the Dakotas who till more than 5 acres of native sod and plant an annual crop on that land will see reductions in their crop insurance benefits during the first four years.
- Additional flexibility for irrigated and non-irrigated enterprise units and coverage levels will be available in the spring of 2015, including enterprise units for irrigated and non-irrigated crops and the ability to purchase different levels of coverage for a variety of irrigation practices.