Noteworthy Items About Crop Insurance

Due to the drought in many parts of the country, the USDA Risk Management Agency issued a bulletin on August 22 that included the following:
“For the 2013 crop year, USDA's Risk Management Agency (RMA)—which manages and operates the Federal Crop Insurance Corporation—intends to file special provisions statements to allow haying or grazing of cover crops without impacting the insurability of planted 2013 spring crops. This flexibility will help farmers, if they choose, plant a cover crop without risking crop insurance coverage in 2013, providing much needed forage and feed this fall and winter.”

One question in response to this was about interseeding cover crops into existing crops. The interpretation was that if a crop is physically planted into the corn, the corn is uninsurable.  If a cover crop is broadcast seeded over the top into the standing crop, the corn would remain insurable but if corn yield is reduced by cover crop, there would be an uninsured cause of loss appraisal.

Another concern was regarding termination of a cover crop in 2013. The August 22 bulletin stated:
“To assure any spring planted crops in 2013 are not negatively impacted by cover crops, policyholders may be required to stop haying or grazing at a certain point in the spring and will be required to terminate the cover crop. Some regions may require the cover crop be terminated prior to it reaching the headed or budded stage and other regions prior to a specific date occurring generally in late April or early May. These regional requirements will be contained within the Special Provisions statements filed by November 30, 2012, which is the contract change date for 2013 spring-seeded crops.”

Bottom Line: Contact your crop insurance agent before doing anything with cover cropping, haying or grazing.