USDA Expands Sesame and Improves Tobacco Crop Insurance Policies

VALDOSTA, Ga., Nov. 30, 2020 – The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) today announced an expansion and other improvements to the sesame insurance policy and improvements to the flue cured tobacco crop insurance policy for the 2021 crop year.

“The expansion and improvements to these two plans will better serve the needs of producers in our region and will help improve the integrity and sustainability of the flue cured tobacco program,” said Davina Lee, Director of RMA’s regional office in Valdosta, Ga. “Producers interested in these products should contact their local crop insurance agent before the sales closing date.”

The changes announced today include:

• Improvements to the sesame policy:
  • Expanded program to 8 counties in Georgia and Alabama, and by written agreement for 55 counties without actuarial documents for the crop in Alabama, Florida, and Georgia.
  • Clarified policy provisions.
  • Added cancellation and termination dates of February 28 for Alabama and Florida.
  • Added an end of insurance period date of December 31 for Alabama and Georgia.
  • Revised to require representative samples in accordance with section 14 of the Basic Provisions.
• Improvements to the flue cured tobacco policy:
  • Established distinct price tiers for contracted and non-contracted flue cured tobacco.
  • Changed requirements so that only flue cured tobacco grown under a contract will be eligible for quality adjustment.

Additional information on these policies, including the counties covered and what constitutes a contract, can be found using RMA’s Actuarial Information Browser.

RMA is authorizing additional flexibilities due to the coronavirus pandemic while continuing to support producers, working through Approved Insurance Providers (AIPs) to deliver services, including processing policies, claims and agreements. RMA staff are working with AIPs and other customers by phone, mail and electronically to continue supporting crop insurance coverage for producers. Farmers with crop insurance questions or needs should continue to contact their insurance agents about conducting business remotely (by telephone or email). More information can be found at farmers.gov/coronavirus.

Crop insurance is sold and delivered solely through private insurance agents. A list of 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. Learn more about crop insurance and the modern farm safety net at www.rma.usda.gov.