Crop Insurance Changes Add Confusion

Federal crop insurance policies are facing last-minute changes that were a surprise, according to Kyle Jore, head of crop insurance development at Watts and Associates. One major shift involves the elimination of the buy-up option for prevent plant coverage, which previously allowed farmers to increase their protection by five percent. “It caught us all off guard. It was actually put through just two days before the contract change date. To be clear, the prevent plant is still in place, but the buy-up option that allowed producers to increase coverage for higher-cost production environments was simply removed.” Jore noted USDA cited ad hoc payments to farmers, a justification that has left many industry observers questioning the change. Jore urged farmers to carefully review their options as the crop insurance sales closing season approaches. “Producers should take the time to meet with an agent or two and their risk management advisors to work through all the options because there really are a lot, and on such tight margins, we need those options.”