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By Ben Thiel, Director, Risk Management Agency, USDA
Summer 2021 was unprecedented in how hot and dry it was. How did your crops fair? The yields and quality for crops produced on dryland this year might not have been very good. Perhaps some crops under irrigation looked good, but others didn’t. The lack of moisture and record high temperatures made for tough growing conditions for many crops in the Pacific Northwest. Depending on your location and crops grown, you might have experienced similar challenges.
The question that I would pose is what if this year isn’t the worst we will see for extreme weather risk? Would you be able to financially withstand consecutive loss years like 2021 with your current level of crop insurance? If your farming operation relies on irrigation water, how comfortable do you feel about having an adequate water supply next year or in future years if current conditions persist?
For various reasons, some producers don’t use crop insurance or buy only bare minimum coverage. The majority of producers who do utilize crop insurance probably have settled into a familiar pattern of the same form of insurance from year to year.
However, I believe your crop insurance agent would be willing to discuss other options that could be available to improve your risk management in future years. A crop insurance agent is also available to those who are new to crop insurance. It doesn’t hurt to review costs with an agent and explore the type of risk you would like to cover with crop insurance. Crop insurance agents and insurance companies don’t compete for your business by price but rather by service. Exploring options for additional coverage can be as simple as increasing your coverage level or inquiring about adding additional insurance policies such as Whole Farm Revenue Protection (WFRP), Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO). The sales closing date, which is the last day to purchase insurance, can vary by crop and county.
To see what crops are insurable in your county and the respective dates, visit webapp.rma.usda.gov/apps/actuarialinformationbrowser. A list of crop insurance agents is available at all USDA service centers and online at www.rma.usda.gov/en/information-tools/agent-locator-page. To learn more about crop insurance and the modern farm safety net, visit www.rma.usda.gov.
