CAT Fee Increase
The most recent farm bill has increased CAT fees from $300 (per crop/per county) to $655 (per crop/per county). Any CAT policy holders should take this opportunity to review available coverages to see if there are additional insurance plans that provide a better value.
Rates & T-Yields
RMA reviews rates and T-yields on a three-year rotation and Missouri counties for 2020 have experienced some changes on corn and grain sorghum. T-yields are used as a basis for some policy options and for establishing yield guarantees on new producers.
Breached Levee Statement
RMA has recently released Breached Levee Statements in the Special Provisions of Insurance for many counties across the state. Land flooded due to a breach in a levee resulting from prior year(s) flooding is insurable but will have changes to insurance costs if not repaired before the latter of Sales Closing Date (3/15/2020) or the earliest planting date. The Breached Levee Statement includes specific guidelines to restore pre-flood risk ratings for levees and soil repairs in affected areas. Producers who are farming ground that has been impacted by flooding due to a breach in a levee, should talk to their agent regarding 2020 insurance coverage and premiums.
FAC/NFAC Unit Options
On November 27, 2019, RMA announced changes to crop insurance for select counties on grain sorghum and soybeans. These changes seek to allow additional unit option flexibilities for producers with Following Another Crop (FAC) and Not Following Another Crop (NFAC) practices. A comment period for these changes is still open, and more details are expected soon.
Industrial Hemp
The most recent farm bill sought to establish an insurance policy for industrial hemp. 2020 coverage on industrial hemp will be available through a Whole Farm Revenue Protection Policy (WFRP). It is expected that a MPCI policy will be developed in the near future.
