The U.S. Department of Agriculture (USDA) announced today that its Risk Management Agency (RMA) is modifying four Northern Potato Crop Insurance Policy optional endorsements. The options are available to producers who choose to purchase additional coverage on top of their multi-peril crop insurance policy. The changes specify that the premium only applies to planted acreage and is no longer charged on acreage prevented from planting. The changes will be effective for the 2022 and succeeding crop years.
“Producers will benefit from this change since the premium will only be due for years when the crop is planted, which will make the additional coverage more affordable in years when the crop is prevented from planting,” said RMA Acting Administrator Richard Flournoy.
The modifications are applicable to the Quality Endorsement, Processing Quality Endorsement, Certified Seed Endorsement and the Storage Coverage Endorsement. Currently, insured operations are charged a premium if they elect the optional endorsements by the sales closing date, regardless if the acreage was prevented from planting or not.
For example, the Storage Coverage Endorsement extends crop insurance coverage for potatoes that have been harvested and are in storage. Acreage prevented from planting would not need coverage that is specifically designed for a final harvested crop. Previously the acreage was still charged a premium.
The changes are a result of RMA’s outreach to potato commodity groups and the crop insurance industry. With these changes, producers will see their premium reduced during years when there are prevented planting losses and an offsetting increase in years without those losses, which enhances the overall financial stability provided by insurance.
Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available online using the RMA Agent Locator.Source : usda.gov