RMA Strengthens Insurance Policies Including Dry Beans, Dry Peas and Wheat
Updated Policy Also Benefits Veteran Farm Families and Organic Producers
WASHINGTON, June 30, 2021 – The U.S. Department of Agriculture (USDA) is making improvements to crop insurance to better enable agricultural producers to manage risk on their operations. Specifically, USDA’s Risk Management Agency (RMA) is adding new options for producers of dry beans, dry peas, and small grains, such as wheat, as well as making other adjustments that make crop insurance more accessible for organic producers and veteran farm families.
RMA is making these changes through three Final Rules, which posted this month on the Federal Register.
“RMA is focused on how we can make crop insurance a better risk management tool for producers,” said RMA Acting Administrator Richard Flournoy. “This month, we’re rolling out a suite of updates based on feedback from producers and agricultural organizations that strengthen coverage options and increase consistency, clarity, and flexibility. These updates will benefit producers of dry beans, dry peas, and small grains, veteran farm families, and organic producers in the certification process.”
Dry Beans and Dry Peas
Beginning in 2022, the Dry Beans and Dry Peas regulation will:
- Allow enterprise and optional units by type for dry beans and dry peas, preventing a gain on one type of crop from impacting an indemnity for a loss on another type. Enterprise units by type allow a producer to insure all acres of a type in a county as one unit, as opposed to basic and optional units which may base insurance on a portion of the acreage. Enterprise units are attractive to producers due to additional premium discounts provided given risk is diversified across the county.
- Also, allow enterprise and optional units for dry beans to be insured by written agreement, which is consistent with current provisions for dry peas.
- Clarify that if no insurable fall planted acreage exists, the later spring sales closing date would apply in counties that have offers for both the fall and spring-planted types.
Beginning in 2022, the Small Grains regulation will:
- Allow enterprise units by type for wheat. Similar to dry beans and dry peas, this change will prevent a gain on one type of crop from impacting an indemnity for a loss on another type.
- Allow optional units for Khorasan type wheat. Currently, optional units by type are available for all types insured, except for Khorasan.
RMA gathered feedback on the Area Risk Protection Insurance (ARPI) Regulations and Common Crop Insurance Policy (CCIP) Basic Provisions in 2020. Based on input, RMA issued a regulation to update the ARPI Regulations and CCIP Basic Provisions, beginning in 2022, that will:
- Revise the definition of “veteran farmer or rancher” to allow a married couple to be considered a veteran farmer or rancher, even if one spouse is not a veteran. (ARPI Regulations and CCIP Basic Provisions)
- Allow a producer to report acreage as certified organic, or as acreage in transition to organic, when the producer certifies that they have requested, in writing, a written certification or other written documentation from a certifying agent on or before the acreage reporting date. RMA allowed this flexibility during the pandemic, but certification is a challenge in normal years. Adding relief to the policy provides permanent flexibility. (CCIP Basic Provisions)
RMA is accepting comments for 60 days each on these changes on all three rules: Dry Beans and Dry Peas, Small Grains, and ARPI Regulations and CCIP Basic Provisions. Additionally, on the Small Grains Regulation, RMA is inviting comments on whether to allow replanting payments in situations where damage occurs prior to the fall final planting date in counties where winter and spring small grains coverage is available. Comments can be made through regulations.gov or by mail.
Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net at rma.usda.gov.
USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
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