More States, Counties Added to Crop Insurance Programs

October 4

USDA has added more states and counties to the adjusted gross revenue (AGR) and crop revenue coverage (CRC) crop insurance programs. Coverage levels also are increased up to 85% for selected crops and counties.

The AGR pilot insurance plan is expanded to provide coverage for the 2000 and 2001 crop years in selected counties in Idaho, Oregon, Connecticut, Rhode Island, Vermont, Maine and New Hampshire.

A producer's average revenue from historic Schedule F tax data is used by the AGR program. That data are compared to the expected revenue for the insurance year to provide a level of guaranteed revenue for the insurance period. The pilot targets areas where a number of crops are produced that currently do not have multiple-peril crop insurance programs available. USDA's authority to offer all types of revenue insurance expires after the 2000 crop year, so a legislative change will be needed for the 2001 crop year.

The CRC program is expanded to cover corn in all counties where MPCI coverage is available for corn in Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and West Virginia; for soybeans in all counties where MPCI is available for soybeans in Delaware, New Jersey, New York, Pennsylvania and West Virginia.

Also, the 95% price percentage option is removed and 80% and 85% coverages are offered wherever the Federal Crop Insurance Corporation offers such coverage. American Agrisurance, the company that created the CRC, will be allowed to use the Minneapolis Grain Exchange durum wheat futures market price to determine the base and harvest prices for spring durum wheat; offer 80% and 85% coverage where FCIC offers such coverages; offer CRC durum wheat coverage in selected North Dakota counties and require CRC spring durum wheat producers to use their durum wheat actual production history or, if not available, the county T-yield to determine guarantees.

During the 1999 crop year, FCIC offered 80% and 85% coverage levels under individual yield coverage plans in certain areas and for a limited number of corps. FCIC will expand the crops and areas where these higher coverage levels will be available during the 2000 crop year. The increased coverage will be available for barley, corn, cotton, ELS cotton, flue-cured tobacco, green peas, processing sweet corn, rice, soybeans, sugar beets and wheat in selected counties.

A complete listing by states, crops and counties will be available soon on the RMA web site.