WASHINGTON – Farmers now have a low-cost option for insuring small parcels of land in one county by combining them into a single enterprise unit with land in a neighboring county under their crop insurance. The U.S. Department of Agriculture’s Risk Management Agency (RMA) is offering the new endorsement known as the Multi-County Enterprise Unit for farmers interested in covering two counties in the same state under their crop insurance policy.
“Today’s farmers and ranchers face tremendous challenges. Access to affordable, flexible crop insurance options shouldn’t be one of them.” said RMA Administrator Martin Barbre. “This simple policy change will help producers manage their overall production risk by combining acreage into a larger unit, which could also lead to lower insurance premiums for policyholders. It’s a win-win.”
The endorsement is available for spring crops with a November 30, 2018, and later contract change date. Initially targeted crops include coarse grains (corn, grain sorghum, soybeans), cotton, canola, peanuts, rice, small grains (barley, wheat), and sunflowers.
To qualify for the endorsement, one county must qualify independently for an enterprise unit and the other county must not qualify for an enterprise unit. Both county crop policies in the Multi-County Enterprise Unit must be with the same Approved Insurance Provider and have the same elections for Multi-County Enterprise Units, insurance plan, coverage level, and enterprise unit by practice.
Interested farmers should contact their crop insurance agent to discuss options. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator.
For more articles concerning risk management, click here.