Crop Insurance Program Expanding

Federal officials Wednesday agreed to expand a new crop insurance program that guarantees farmers a predetermined income.

The program, called Crop Revenue Coverage, is a U.S. Department of Agriculture-subsidized program that protects farmers against losses of a crop or against price drops.

Tested last year in Iowa and Nebraska, the program next week will be available in 18 states, including Montana. If it proves successful, the program could stretch into Washington and Idaho in future years.

The program is designed as a safety net for farmers while the government phases out crop subsidies during the next six years. The guaranteed-income program will help farmers establish a base farming income that they need to secure agricultural loans.

Farm crops are vulnerable each year to drought, floods, hail, frost and disease. Insurance companies say they can’t afford to write crop insurance unless the government shares part of the risk.

The government will subsidize 25 cents of each dollar in Crop Revenue Coverage premiums sold, slightly below its typical share of 29 cents.

, DataTimes