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USDA Simplifies Crop Insurance

USDA Simplifies Crop Insurance

RMA is combining crop insurance policies.

USDA's Risk Management Agency has combined and streamlined federally-subsidized crop insurance products.

The policies remain pretty much the same. But the names are all different.

One policy, "Revenue Protection" (RP) replaces both Crop Revenue Coverage (CRC) and Revenue Assurance (RA). Actual Production History (APH) becomes "Yield Protection."  Income Protection (IP) and Indexed Income (IIP) become "Revenue Protection with Harvest Price Exclusion." 

Conversions are automatic

"Producers of corn, cotton, soybeans and other spring-planted crops, who have crop insurance policies, will not actively have to do anything," says Jan Eliassen, a private consultant who does risk management education work for the crop insurance industry, USDA's Risk Management Agency and several state departments of agriculture. "Your old policy will roll over into a new name."

This new "Common Crop Insurance Policy" (COMBO) kept and combined the principle features in the five plans that producers bought most often.  Now all insurance coverage is consistent in insurance protection and cost to producers.

Which crops are insurable and what types of policies are available varies from state to state and county to county.

If you want more clarification of what these changes mean for you, contact your crop insurance agent well before the deadline to buy crop insurance. For most spring-planted crops in the South the deadline is February 28. In most other states the deadline is March 15.

The sign-up deadline is also the deadline for making any changes to existing policies.

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