USDA Increases the Maximum Contract Price for Camelina Crop Insurance
BILLINGS, Mont. Dec. 6, 2022 — The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) announced today that it is increasing the maximum contract price for camelina crop insurance from $0.18 to $0.45 per pound for the 2023 crop year. This is important for camelina producers because they use their contract price to establish their insurance guarantee. A higher maximum contract price means higher available insurance coverage.
“Camelina is important for the production of renewable fuels, and prices have increased sharply in recent years as processors seek more planted acres of camelina to meet the growing demand for renewable fuels,” said Eric Bashore, Director for RMA’s Regional Office in Billings. “We are increasing the maximum contract price to better reflect what producers expect to receive during the upcoming growing season and allow producers to insure their crop at its full value.”
Camelina is an annual crop in the mustard family, which is primarily used for the production of biodiesel. Camelina is a drought tolerant crop that is capable of growing in harsh environments and also offers additional crop rotation possibilities for producers.
The camelina insurance pilot offers Actual Production History coverage, which insures a producer’s historical yield. Only spring-planted camelina grown under contract with a processor is eligible for coverage, and the price in the contract is required to establish the insurance coverage.
The changes to the camelina crop insurance pilot program are now available on the USDA Risk Management Agency website.
Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available online using the RMA Agent Locator. Producers can use the RMA Cost Estimator to get a premium amount estimate of their insurance needs online. Producers can learn more about crop insurance and the modern farm safety net at www.rma.usda.gov.
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