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Product Management Bulletin-PM-20-088

Date
To
All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties
From
Richard H. Flournoy, Deputy Administrator
Subject
Flue Cured and Burley Tobacco Changes for the 2021 Crop Year

The Risk Management Agency (RMA) is revising the Special Provisions of insurance for the flue cured and burley types of tobacco. The revisions were made based on stakeholder feedback. These changes will help improve the integrity of the program and make it more sustainable going forward. The changes include:

  • For flue cured tobacco; RMA will issue separate price elections for contracted and non-contracted tobacco. In addition, quality adjustment will only be available for tobacco grown under contract.
  • For burley tobacco; RMA will be adjusting the price per pound and transitional yields for organic burley tobacco in accordance with recent data and contract pricing will no longer be allowed.

The Special Provisions for flue cured tobacco and burley tobacco for the 2021 crop year will be available by close of business today on the RMA website at www.rma.usda.gov. Approved insurance providers must notify policyholders of these changes at least 30 days prior to the cancellation date, as required by the policy. Interested producers should contact a crop insurance agent for further information. A list of agents can be found on the RMA website at www.rma.usda.gov/Information-Tools/Agent-Locator-Page. DISPOSAL DATE: December 31, 2021