Deadline Nears for Most Crop Insurance Policies March 15

ANNAPOLIS, MD (March 9, 2011) – Maryland farmers have until March 15 to sign up for federal crop insurance policies on 12 crops including corn, soybeans, oats, forage seeding, processing sweet corn, fresh market sweet corn, processing beans, grain sorghum, green peas, fresh market tomatoes, processing tomatoes and Maryland type tobacco.

“Maryland farmers face significant challenges to profitability including the rising cost of production and adverse weather conditions,” said Maryland Secretary of Agriculture Buddy Hance. “Crop insurance is an effective way to manage risk and keep your eye on the bottom line.”

The insurance prices on which crop insurance protection and claims are based, for most spring crops for 2011 are:
corn insured as grain, $6.01/bushel; corn/organic practice $10.75/bushel; corn insured as silage $42.25/ton; soybeans $13.52/bushel; soybeans/organic practice $24.25/bushel  etc.  If you have catastrophic (CAT) protection the prices are 55 percent of the above prices.

Eligible spring-planted crops enrolled in a crop insurance policy may be protected under the federal Supplemental Revenue Assistance Program, or SURE, for 2011, provided all other crops are covered by crop insurance or non-insurance assistance program coverage (NAP). If insurance coverage is not available on a crop and producers want to be eligible for disaster assistance, they must sign up for NAP coverage from the USDA’s Farm Service Agency (FSA) (deadline for most spring crops is March 15).

If producers missed enrolling by prior crop insurance deadlines for crops like perennials, wheat or barley, AGR-Lite is available as a whole revenue farm insurance that could make them eligible for SURE payments. The deadline for AGR-Lite is March 15.

If insurance coverage is not available on a crop and producers want to be eligible for disaster assistance, they must sign up for NAP coverage from the U.S. Department of Agriculture’s Farm Service Agency (FSA) (deadline for most spring crops is March 15).

Producers insuring multiple or large farms may also be able to choose to insure using “enterprise units” to receive up to a 50 percent premium discount. Enterprise units may reduce the cost of traditional coverage and allow producers to purchase insurance at higher coverage levels to better protect the higher than normal crop prices, if a disaster occurs or better reduce the risks associated with their marketing plan. The higher the level of crop insurance, the greater the guarantees will be for the policy and disaster protection.

From 2005 to 2009, Maryland farmers spent $48 million in premium purchases to receive more than $86 million in crop insurance indemnities for a total of about $38 million in net farm income.  During these years in Maryland, every $1 spent on premiums, returned an average of $1.80 in indemnities.

Farmers interested in purchasing federally subsidized crop insurance, should contact their local crop insurance agent before March 15 for details and premium quotes. A list of crop insurance agents is available at www3.rma.usda.gov/apps/agents.

This press release is part of a cooperative outreach effort by the Maryland Department of Agriculture, the University of Maryland Cooperative Extension and the USDA Risk Management Agency. For more information at MDA, contact Mark Powell at (410) 841-5775.