The impact of breached levees on crop insurance for Missouri farmers

Watch the videos below and read the article to gain a better understanding of how Missouri levees breached in 2019 can qualify for 2020 crop insurance.

2020 Crop Insurance and Missouri Breached Levees

Insure High-Risk Farmland in Missouri for 2020 Planting Season

Many Missourians saw floods and breached levees for more than 75% of 2019. The Kansas City District for U.S. Army Corps of Engineers (USACE) maintained emergency operations for a period of 279 days in 2019, marking the longest duration of a declared flood event in their history.  The impacts of the 2019 flood and continued wet conditions have hindered repair efforts for levees damaged or breached throughout the state. 

Actuarial ratings for Missouri’s multiple peril crop insurance policyholders are determined by the Risk Management Agency (RMA) and take into consideration protection provided by sound levee systems.  When these levee systems become compromised, the risk profile for this ground changes.  For this reason, RMA has introduced a Breached Levee Statement for some counties along Missouri’s major rivers and tributaries that could change the cost of insurance for producers in 2020.  Here are some important considerations to know about the Breached Levee Statement and how it may impact you. 

• Missouri counties where the Breached Levee Statement was added to the special provisions of insurance.

• Ground flooded due to a breach in a levee IS insurable. 
• High-risk rates will be determined based upon levee and soil conditions on the latter of March 16 or the earliest RMA established spring planting date for your county.
  • If, by that date, the levee and/or soil is NOT repaired to prior specifications the land will be classified high-risk and will assume the highest rate classification in the county. 
  • If, by that date, the levee and/or soil IS repaired AND certified to prior specifications the land will receive the normal actuarial rating.
  • If, by that date, the levee has been repaired but not to prior design specifications and the soil is restored to the same pre-flood yield potential, RMA may adjust the rate to be consistent with the new flood risk through a written agreement. 
• Exceptions
  • In some circumstances a written agreement may be requested.  Please speak to your local FCS Financial crop insurance specialist as soon as possible for more details. 
• For RMA to consider a levee repair the following is needed:
  • For levee systems within the USACE jurisdiction, RMA must be provided a certification from the USACE.  In most cases the RMA Topeka Regional Office should obtain the necessary certification directly from USACE. 
  • For all other Missouri levee systems:
    • The RMA Topeka Regional Office must receive a signed certification affixed with a seal from a certified professional engineer licensed and registered in Missouri.  Only one certification is required for each levee system repaired. 
    • Certifications should include the following:
      • Levee system, name, and location
      • Yes or No – Has the levee system been repaired to prior specification?
      • Yes or No – Has the levee been repaired temporarily or permanently with a level of protection not to prior specifications?  If yes, please include the minimum overtopping height (in feet) based upon an identified river gage station.      
      • Date of levee repair
• Contact your local FCS Financial crop insurance specialist for more details. 
• Informational Memorandum from USDA
• Actuarial Rates Resulting from Breached Levees in Missouri USDA Memorandum
• Updated USDA Memorandum - Actuarial Rates Resulting from Breached Levees - March 13, 2020 
• Updated USDA Memorandum - Actuarial Rates Resulting from Breached Levees - March 20, 2020
• Breached Levee Statement Frequently Asked Questions