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Deadline Approaches To Sign Up For Farm Bill Crop Insurance

By Drew Daudelin

Posted March 23, 2015

Just over a year after the Farm Bill passed, the deadline for farmers to choose from its selection of insurance programs is almost here. Early estimates show the vast majority of Hoosier farmers have already signed up, but getting there required quite a bit of effort from the USDA, agriculture organizations, and farmers themselves.

National policy advisor for the Indiana Farm Bureau Kyle Cline says he feels good about where they are, if the estimates ring true. Education efforts have been ongoing since the bill passed, including workshops and regional events.

Cline says the Farm Bureau wanted to help farmers understand the decisions they're faced with, data they might learn from, and new decision-making tools the USDA helped make available.

"We know that this was one of the most complex farm bills, if not the most complex farm bill in history, because for the first time it offered producers choices in terms of the program that they can elect," Cline says.

That choice is between three crop insurance programs – Agriculture Risk Coverage (ARC) at the individual farm level, ARC at the county level, and Price Loss Coverage (PLC).

Farmers can only choose one program for the life of the five-year Farm Bill.

The million dollar question, Cline says, is what markets will look like over that period of time.

"That's the biggest challenge, I think, for the farmers," Cline says. "Maybe not necessarily understanding just how the program works, and how it will be set up in the formulas for determining if there would be a payout, but just the uncertainty of the marketplace, the commodity marketplace."

Cline says the USDA hasn't released official numbers for Indiana yet, but that rough estimates last week were at 85-90 percent. The deadline to sign up is March 31.

If a farmer in Indiana fails to meet the deadline they will automatically be enrolled in the PLC program, which Cline says wouldn't be the best fit for most producers in the state.

The PLC program kicks in when crop prices tank, and make up the difference for farmers indefinitely until prices return above the threshold. ARC, on the other hand, kicks in when prices land anywhere in the range between 76-86 percent.

Lower than 76 percent, farmers enrolled in ARC are on their own. But Cline says for corn and soybean producers in Indiana that shouldn't be a concern.

He says the PLC option works best to protect riskier crops, like some found in the southern region of the country.

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