Producers Need to Make Insurance Decisions Soon as Crop Insurance Deadlines Near
Posted: February 3, 2016
USDA’s Risk Management Agency (RMA) reminds producers that the final date to apply for Whole-Farm Revenue Protection and insurance coverage on most other spring grain crops is March 15. Current policyholders who wish to make changes to their existing coverage also have until the sales closing date of March 15th to do so. Crop insurance provides protection against a loss in production due to natural perils, such as drought or excessive moisture.
RMA changed the Whole-Farm Revenue Protection policy to include improvements for beginning farmers and ranchers, livestock producers, and producers whose operations are expanding. More beginning farmers and ranchers can participate in the program because RMA now requires only three historical years and farming records from the past year. Any beginning farmer and rancher may qualify by using a former farm operator's federal farm tax records if they assume at least 90 percent of the farm operation. Producers can now insure up to $1 million worth of animals and animal products. RMA also increased the cap on historical revenue for expanding operations to 35 percent so growing farms can better cover their growth in the insurance guarantee.
Producers are encouraged to visit their crop insurance agent soon to learn specific details for the 2016 crop year. 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. Producers can use the RMA Cost Estimator to get a premium amount estimate of their insurance needs online. Learn more about crop insurance and the modern farm safety net.
Remember, it is the responsibility of each farm operator to be certain they have a risk management plan in place adequate for their specific needs.