As crop insurance purchase deadlines approach for the majority of the Corn Belt on March 15, the National Corn Growers Association urges farmers to explore how changes in policies can make coverage more affordable. With lower insurance premiums being offered for most coverage levels this year and adjustments to historical-yield trend calculations, many growers can take advantage of lower rates and increases in coverage.
"At NCGA, we constantly strive to improve the safety net for farmers and hope that in 2012 many will take advantage of the improved options that we have achieved," said NCGA President Garry Niemeyer. "We faced difficult weather conditions across much of the Corn Belt in 2010 and again in 2011. By reexamining crop insurance options, many growers may find that increased coverage is more affordable and will better guard against losses in 2012."
Lower premiums are the result of adjustments that the Risk Management Agency made based on updated crop insurance actuarial data and partial implementation of proposed changes to the program's rating methodology. This decision came following sustained, tireless advocacy by NCGA for crop insurance premiums that more accurately reflect the losses in a given region.
Augmenting the effect of this adjustment, farmers in many areas are also benefitting from an additional change in the addition of the Trend-Adjusted Actual Production History (APH) Yield Endorsement option. This option allows producers with qualifying APH databases in eligible counties to chose to have their APH yield, used to determine crop insurance guarantee coverage, adjusted based on their county's historical yield trend.
The decision to add this beneficial option was based on research sponsored by the Illinois Corn Marketing Board with funding from the Illinois corn checkoff.
For the product options under the Common Crop Insurance Policy, also known as COMBO, click here.