Risk Management Agency: USDA Announces Details of New Insurance Option for Conservation-Minded Corn Farmers

WASHINGTON, Jan. 6 -- The U.S. Department of Agriculture's Risk Management Agency has issued the following news release on Jan. 5, 2022:

Corn farmers who "split-apply" nitrogen now have another option for insurance coverage. The U.S. Department of Agriculture's (USDA) Risk Management Agency (RMA) today announced the details of its Post Application Coverage Endorsement (PACE) in certain states for non-irrigated corn, providing coverage for producers who use this practice that saves producers money and is considered better for natural resources.

"We are proud to offer this new insurance option that encourages the use of conservation practices that benefit not just the environment, but also producers' balance sheets," said RMA Administrator Marcia Bunger. "America's agricultural communities are on the frontlines crafting solutions to address climate change and improve the environment. Across USDA, we're adapting our programs to meet the needs of producers as well as the challenges they face."

PACE provides payments for the projected yield lost when producers are unable to apply the post nitrogen application during the V3-V10 corn growth stages due to field conditions created by weather. PACE is offered in select counties in 11 states, including Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. It is available as supplemental coverage for Yield Protection (YP), Revenue Protection (RP), and Revenue Protection with Harvest Price Exclusion (RP-HPE) policies. The first sales closing date to purchase insurance is March 15, 2022.

To "split-apply" nitrogen, growers make multiple fertilizer applications during the growing season rather than providing all the crop's nitrogen requirements with a single treatment before or during planting. This practice can lead to lower input costs and helps prevent runoff and leaching of nutrients into waterways and groundwater.

This new crop insurance option builds upon RMA's efforts to encourage use of conservation practices, including cover crops. For example, RMA recently provided $59.5 million in premium support for producers who planted cover crops on 12.2 million acres through the new Pandemic Cover Crop Program (https://www.farmers.gov/cover-crops). Additionally, RMA recently updated policy to allow producers with crop insurance to hay, graze or chop cover crops at any time and still receive 100% of the prevented planting payment. This policy change supports use of cover crops, which can help producers build resilience to drought.