November 30, 2012
USDA's Risk Management Agency (RMA) announced crop insurance premium rate adjustments for 2013 crops including rice. The adjustments are the result of a multi-year review of RMA's rating methodologies. For rice, the overall premium reduction is 8 percent, but the changes vary by state and from county to county within a state. The largest decreases are in California and Louisiana at 14 percent; while Texas is 12 percent; Mississippi 11 percent; Arkansas 4 percent; and Missouri has an increase of 1 percent.
"U.S. rice producers appreciate the diligence of RMA to review and adjust crop insurance premium rates to better reflect risks," said Joe Mencer, USA Rice Crop Insurance Task Force chairman and Arkansas producer. "An overall decrease in premium rates for rice policies is welcome news to rice producers and a great benefit to our industry. We feel that this will help encourage more participation and increase coverage levels."
Further background on the rate adjustment process and maps showing the state-by-state changes for all crops is available here.
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