Some Cotton Crop Insurance Rates May Be Halved

October 27, 1999

USDA has announced a new cotton rating plan that could lower crop insurance rates by half for some farmers. The new rating system was introduced recently in the insurance industry.

The new system brings rates more in line with risk. Rates will decline most dramatically in certain counties in Arizona, Arkansas, California, Louisiana, Mississippi, Missouri, southwestern New Mexico and Tennessee. In the other states, premium changes will range from 10% less to 5% more.

USDA's Risk Management Agency will release new premium rate tables to insurance providers by November. Rates then will be available from crop insurance agents or from the RMA web site. A listing of agents may be found at local Farm Service Agency offices or on the Internet at http://www.rma.usda.gov/tools/agents.