New Crop Insurance Option for Popcorn

SPRINGFIELD, Ill., Feb. 26, 2015 – The USDA’s Risk Management Agency (RMA) announced the availability of an area-based crop insurance option for popcorn. Farmers can purchase the popcorn Area Risk Protection Insurance (ARPI) plan for the 2015 crop year in Illinois, Indiana, Ohio, and Michigan.

ARPI is designed as a risk management tool to insure against widespread loss of production of the popcorn crop in a county. The policy is based off corn yields and assumes that when an entire county’s corn crop yield is low, most popcorn producers in that county would also have low yields. ARPI protects against events such as adverse weather, insect damage, plant disease, fire, wildlife, and failure of irrigation water supply.

“Interested producers must purchase a popcorn ARPI policy by March 15 and have a contract with a popcorn processor.” said Brian Frieden, RMA Springfield Regional Office director.
Yield Protection, Revenue Protection, and Revenue Protection with Harvest Price Exclusion options are available under the popcorn ARPI policy. Producers can choose Catastrophic Risk Protection coverage or buy-up coverage up to 90 percent. The ARPI policy replaces Group Risk Protection and Group Risk Income Protection.

Producers are strongly urged to contact a crop insurance agent as soon as possible for premium quotes and more details. 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. Producers can use the RMA Cost Estimator to get a premium amount estimate of their insurance needs online. Learn more about crop insurance and the modern farm safety net at www.rma.usda.gov.