FarmPolicy

April 24, 2018

Crop Insurance; Budget & Farm Bill; Ag Econ; Trade; and Senate Ag Committee Hearing

Crop Insurance Developments

Linda H. Smith reported yesterday at DTN (link requires subscription) that, “Midwest corn and soybean growers could see savings of $2 to $3.50 an acre on their crop insurance premiums next year after USDA’s Risk Management Agency re-rated the two crops using a new formula.

RMA on Monday announced the results of re-rating states actuarially, using a 20-year rolling average (currently 1990 through 2010).

“‘On average, these new rates should reduce corn farmers’ rates by 7% and soybean farmers’ by 9%,’ said RMA Administrator Bill Murphy. Given most Midwest farmers pay between $30 and $50 an acre for crop insurance, they could see savings of $2 to $3.50 per acre. A few states such as Texas and Pennsylvania will see modest increases because of their loss experience.”

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