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
Tennessee corn and soy farmer Josh Ogle joins us to discuss rapid planting progress in the state, improving moisture conditions, and early crop development challenges in the MidSouth region.
Paul Neiffer joined us to explain how USDA’s base acre expansion will be calculated, outline key deadlines for farmers, and discuss how the changes tie into farm program decisions and the broader Farm Bill outlook.
Chad Fiechter joins us to discuss Purdue’s precision ag study, challenges in capturing value from technology, and what farmers should consider when investing in and adopting these tools.
The trip is giving them a firsthand look at farming beyond the U.S.

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:

Roger McEowen discusses how long-term healthcare costs for elderly Americans are reshaping estate-planning decisions for farm families and what producers should consider moving forward.
Farmer Jeffry Mitchell with the Mississippi Farm Bureau joins us for a spring planting update from the southeast region as drought, input costs, and fertilizer access complicate crop progress.
Cattle producers face mounting pressure as U.S.-Mexico trade talks resume, but expanding drought, rising input costs, and policy work to improve the long-term industry outlook.
Lower U.S. ethanol production and stocks may support ethanol prices while strong export demand continues to support ethanol and corn markets.
More Farms File for Bankruptcy As Strong Farm Loan Demand Boosts Bank Earnings
China’s changing pork demand may limit export growth opportunities.