The Hagstrom Report

Agriculture News As It Happens


USDA announces crop insurance rate changes

Crop insurance premium rates for grain sorghum, spring wheat, rice and cotton will go up in some states and down in others in 2013, according to new rates announced today by the Agriculture Department's Risk Management Agency.

RMA revised rates for corn and soybeans in 2012.

RMA noted that in a news release that it has revised the rates in line with an independent study that recommended the agency give more weight to recent years, rather than the traditional approach of giving equal weight to all years back to 1975. Last year premium rate revisions on corn and soybeans resulted in overall decreases in premium collected through much of the country, RMA noted in a news release.

USDA’s crop insurance program insures 264 million acres, 1.14 million policies, and $110 billion worth of liability on about 500,000 farms.

National Crop Insurance Services, a research organization supported by crop insurance companies, noted in a statement today that RMA sets crop insurance premium rates under the authority of the Federal Crop Insurance Act.