Ag Policy Blog
Chris Clayton DTN Ag Policy Editor

Sunday 08/17/14

RMA Readying Details on Spring Crops and SCO

USDA's Risk Management Agency could announce details for the spring-crop offering for the Supplemental Coverage Option as early as this week.

Early details about SCO coverage for spring crops will help farmers consider the options for commodity programs later this year or early in 2015.

Preparing for DTN's webinar on Thursday, I emailed RMA staff asking about SCO's winter-wheat offering and where SCO would be offered for spring crops. RMA had announced earlier this month that farmers in counties amounting to about 80% of winter-wheat production area would be eligible to buy the supplemental coverage. Farmers in about 20% of winter-wheat growing areas are excluded this year.

RMA stated, "SCO coverage for crops other than cotton (in 2015) will be based upon county yield data from NASS. Because of this, SCO is being offered where there is sufficient NASS data to establish a reliable county expected yield and premium rates. This approach, which follows what is done for currently-established area-based plans of insurance, was the most straight-forward and provided the best chance for quick implementation in the short time frame since the Farm Bill was enacted. The vast majority of each crop's production will be covered."

Some Kansas counties were not included in SCO due to lack of data necessary to run an area-based program. For example, some counties that do have individual policies but do not have SCO didn’t have any wheat information reported since 2007. Others were reported, but didn’t have enough acres in production to operate an area program.

While farmers will make a five-year decision locking in their commodity programs, RMA could offer SCO "in additional counties in subsequent years, using yield data reported to RMA by insured producers," the agency stated.

"RMA intends to expand availability for 2016, using yield data from insured producers. Availability for spring crops will likely be provided in the next few weeks."

The agency's spokesman also stated that RMA expects the SCO program will nearly the triple the number of counties offering an area-wide insurance plan.

"In this timeframe, RMA intends to provide maps that show SCO availability for spring crops. While details are still being finalized, these maps will clearly demonstrate that RMA is expanding to as many counties as possible as quickly as possible."

DTN's webinar on farm-bill choices will be held at 9 a.m., CDT on Thursday. Registration can be found at http://dld.bz/…

Follow me on Twitter @ChrisClaytonDTN

Posted at 8:18PM CDT 08/17/14 by Chris Clayton
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
October  2014
S M T W T F S
         1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31   
Subscribe to Ag Policy Blog RSS
Recent Blog Posts
  • Vilsack Addresses Checkoff Controversy
  • GAO: 'USDA Needs to Better Communicate Climate Plan'
  • Offering Advice on Farm Bill Choices
  • Governors, Attorneys General say CWA Rule a Legal Threat to Farmers
  • Dem Senators ask President to Leave RFS Alone
  • Senators Push for Withdraw of Endangered Species Act Rule
  • ARC and the PLC Reference Price
  • Beef Promotion Leads to Beef Politics
  • Small Business Advocacy Group Calls for CWA Rule to be Withdrawn
  • CRP, Base Acres and Proof for Yield Updates
  • Business Groups: Withdraw WOTUS Rule
  • Photo Fees on Public Lands? C'Mon, Man!
  • USDA ARC-PLC Rollout and Decision Tools for Farmers
  • Point, Counterpoint on EPA's Waters of the U.S. Rule
  • Point, Counterpoint on EPA's Waters of the U.S. Rule
  • Senate Committee Passes Railroad Regulatory Bill
  • U.S. Shanghaied in Smithfield Deal?
  • Route 66: The End of the Trail
  • House Votes to Block EPA WOTUS Rule
  • Vilsack on Easements, Rail and Livestock Aid