The National Corn Growers Association voiced support for the U.S. Department of Agriculture’s announcement that rate adjustments will be made to crop insurance premiums over the next two crop years.
“Crop insurance rating reforms have been a priority for our members for many years,” NCGA President Pam Johnson says. “NCGA feels the Risk Management Agency’s announcement represents real reform in decreasing the widening gap between the loss ratio for corn and the premiums charged to growers for policy coverage.”
The USDA’s Risk Management Agency stated in the announcement that an independent and peer reviewed study recommended more weight be given to recent years, rather than the current approach of giving equal weight to all years back to 1975. This will help provide greater predictability for producers and crop insurance providers. RMA also announced it will be releasing documents by the end of the week that outline premium rates and other program information for the 2013 crop year.
The agency will continue reviews to provide the best rates that most accurately reflect the risk of growing a crop in an area and provide the most affordable crop insurance possible for farmers.
“The rate adjustments made for the 2012 crop year were a great first step and we are pleased to see the RMA following through with additional modifications,” Johnson says. “Corn farmers have historically paid more than their fair share of crop insurance premiums and we are pleased to see USDA moving forward with the proper changes.”