Rural Money: RMA Updates Rainfall Data for Crop Insurance; Concerns Rise Over SDRP Payment Limits

Farm CPA Paul Neiffer discusses SDRP payment limits and offers advice for those seeking higher limits.

An umbrella in the rain

Romolo Tavani - stock.adobe.com

PARKER COLORADO (RFD NEWS) — USDA’s Risk Management Agency is changing the rainfall data source used in several federal crop insurance programs, a move officials say will improve transparency, access, and payment speed without changing how coverage works. RMA is shifting from NOAA’s Climate Prediction Center data to the National Centers for Environmental Information.

The transition begins immediately for the Tropical Storm Option under the Hurricane Insurance Protection-Wind Index program. It will then expand to Pasture, Rangeland, Forage, Apiculture, and Shellfish on August 31, 2026, with Annual Forage following on April 30, 2027.

RMA Administrator Pat Swanson said producers and agents will be able to look up rainfall data themselves in formats they can actually use. The current system relies on a more technical data format that often requires special software.

RMA said the geographic grids and overall structure of the programs will stay the same, helping minimize disruption for producers. Historical comparisons show loss ratios remain nearly identical under the new source.

The agency also said the change should support faster final grid values and indemnity payments while creating a path to add more weather stations over time.

Farm-Level Takeaway: RMA says the rainfall data upgrade should make several insurance programs easier to track and more transparent without changing core coverage.
Tony St. James, RFD News Markets Specialist

Questions continue to surface regarding payment limitations tied to the Supplemental Disaster Relief Program, with many producers now seeking guidance on whether they may qualify for increased payment limits.

Farm CPA Paul Neiffer joined us on Friday’s Market Day Reportto discuss the issue and what producers should know moving forward.

In his conversation with RFD News, Neiffer explained whether there are pathways available for farmers seeking an increased payment limitation under the program. He also discussed whether payment calculations could change in the future and shared guidance for producers currently navigating the situation.

Finally, Neiffer outlined the first steps farmers should consider if they believe they may qualify for additional assistance.

Related Stories
The most common mistake farmers make is waiting until a health crisis occurs to transfer the farm to their children.
Co-founders Jeremy and Heather Clark share how Vets to Cowboys helps U.S. veterans build new skills, find community in cattle ranching, and discover new opportunities in agriculture.
Brooks York with AgriSompo provide insight on crop insurance considerations and the decisions farmers are making as the enrollment deadline approaches.
Farm legal expert Roger McEowen discusses a new rail antitrust case in Kansas and its potential implications for farmers as rail upgrades signal continued export-driven demand for logistics.
Surging energy markets are quickly becoming a cost story for U.S. agriculture as crude oil climbs on supply fears tied to the Middle East conflict.
Technology-driven lending decisions may shape the future availability of farm credit.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Lower production is tightening honey supplies across markets.
Debt pressures could reshape farm policy and credit.
Rising protein demand supports long-term trade in feed and meat.
Diversification is critical as conservation reshapes rural economies.
Herd contraction remains gradual across North America.
Strong land values continue masking tighter farm finances.