Risk Management Agency Program Announcement

NEW CROP INSURANCE OPTION NOW AVAILABLE IN FIVE MONTANA COUNTIES

Contact: Eric Edgington (202) 690-2539
Eric.Edgington@rma.usda.gov

WASHINGTON, Feb 11, 2000 - The Federal Crop Insurance Corporation (FCIC) Board of Directors approved a pilot program in five Montana counties that will help some producers obtain a more accurate insurance yield guarantee. The counties where the Basic Unit Actual Production History (APH) pilot program will operate are Daniels, Fergus, Hill, Pondera, and Yellowstone.

"Because of this new initiative, many producers will be able to increase their insurance protection," said Ken Ackerman, Administrator of the Risk Management Agency. "We"re doing everything possible to give producers the tools they need to manage risk."

Current crop insurance rules require at least four years of continuous production history to establish a yield guarantee. When production history on a tract of land is missing due to rotational requirements or other factors, a transitional yield (T-yield) is used to establish coverage for the years when a crop was not planted on that land. The pilot gives producers the option of combining yields produced on "optional units" into an average yield that will be substituted for the T-yields. The pilot will be effective for all insurable crops (except for dry peas and sugar beets) that are planted in the spring and fall of 2000. This option is not available for the catastrophic level of protection or revenue insurance.

RMA's Billings, Montana, Regional Office will be conducting training for crop insurance agents the week of Feb. 21, 2000. Interested participants should call the office for more information. Farmers who need more information about their current coverage or other options should contact a crop insurance agent. A listing of crop insurance agents is available at local Farm Service Agency offices or at www.rma.usda.gov/tools/agents.