USDA’s Risk Management Agency has announced it will continue to update crop insurance premiums for corn, soybeans, grain sorghum, spring wheat, rice and cotton. Revised rates for corn and soybeans were offered in most counties in 2012. In 2013 – revised rates for grain sorghum, spring wheat, rice and cotton will be available. It was one year ago that RMA announced it would update crop insurance premiums based on findings of an independent study and peer review process. In general – RMA says the study recommended giving more weight to recent years – rather than the current approach of giving equal weight to all years back to 1975.
RMA conducts periodic reviews of its rates and methodology to ensure the Federal crop insurance program doesn’t place an unnecessary financial burden on growers or the American taxpayers through unsound premium rates. RMA Administrator William Murphy says the effort assures that appropriate and fair costs are charged for crop insurance.
The revised premium rates for 2012 and 2013 incorporate improvements – including integration of weather data into the premium rating process, refinement of premium loads for prevented planting and replant payments and placement of more weight on loss experience from recent years. RMA will phase in the new rates to limit year-to-year premium changes and potential increases due to losses experience in 2012 due to the drought. RMA says this will ensure greater stability of premiums and predictable rates.
Visit rma dot usda dot gov (www.rma.usda.gov) for more information.
Source: NAFB News Serivce