WASHINGTON, D.C. (RFD-TV) — The U.S. Department of Agriculture (USDA) is expanding crop insurance options and payment flexibility as farmers continue navigating high input costs, challenging markets and economic uncertainty.
USDA Under Secretary for Farm Production and Conservation Richard Fordyce joined us on Friday’s Market Day Report to discuss new changes announced by the department, including an extended crop insurance premium payment deadline and the return of a prevented planting coverage option.
In his interview with RFD-TV, Fordyce said the changes were driven by feedback from producers who are looking for additional flexibility during a difficult period for the farm economy.
“We’ve had a lot of voices informing us about the prevent plant 5% top-up option and also just flexibilities when premium payments are due,” Fordyce said.
Extended Time to Pay Premiums
One of the changes will give eligible crop insurance policyholders an additional 60 days to pay their premiums.
Fordyce said the extension is designed to provide more cash flow flexibility for producers, particularly during harvest when many farmers are managing significant expenses.
“In my part of the world in Northwest Missouri, when those premiums are due, we’ve barely got combines running,” Fordyce said. “So I’m calling it a cash flow flexibility program.”
The extension will be handled through approved crop insurance providers. Fordyce said farmers do not need to take additional steps to request the change, and the new payment deadline will be reflected on their insurance bills.
No interest will be charged during the additional 60-day period. Interest would only apply if a producer fails to pay the premium after the extended deadline.
Increased Prevented Planting Coverage Options
USDA is also reinstating a 5 percent prevented planting coverage option, allowing producers to purchase additional protection if weather conditions prevent them from planting a crop.
Fordyce said prevented planting coverage has existed within crop insurance policies, but USDA reduced the option last year after reviewing participation. Following feedback from farmers, lawmakers and industry groups, the department decided to bring it back.
Under the option, producers who purchase the additional coverage would receive their underlying prevented planting indemnity, plus an additional 5 percent indemnity payment if they qualify.
Fordyce said the option has been widely used, covering more than 60 million acres last year.
Improved Risk Management Tools for Producers
While the changes provide near-term assistance, Fordyce said they also reflect USDA’s broader focus on improving risk management tools for producers.
“This administration and this USDA, we look at any decision that we make — we want to have that decision be farmer first,” Fordyce said.
If commodity prices remain under pressure, Fordyce said USDA will continue looking for ways to provide additional flexibility where possible. However, he noted that many crop insurance provisions are established through congressional authorization.
“We are looking at a lot of things to see where those flexibilities could be granted,” Fordyce said. “We’re trying to do the most that we can with the flexibilities that we have.”
Fordyce said strengthening the farm safety net remains a priority as producers face continued challenges from market conditions, input costs and unpredictable weather.
