The new farm bill provide some new crop insurance options that will benefit farmers. Mike Alston is Associate Administrator with the Risk Management Agency in Washington D.C. He says the APHY Yield Exclusion is the biggest change. It allows farmers to throw out the actual yield for a crop year that is 50 percent below the county average yield for the previous ten years. He says while it will increase their premium, it’s beneficial for farmers.
Alston says the other change is the SCO or supplemental coverage option. This is a good addition for corn, soybean and wheat producers as it allows them to buy additional crop insurance coverage.
He says an SCO indemnity payment is triggered when yield falls below the county average for a given crop. It also is based on coverage level.