Corn farmers who “split apply” nitrogen will soon have another option for insurance coverage. Beginning in crop year 2022, the U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) will offer the Post Application Coverage Endorsement (PACE) in certain states for non-irrigated corn, providing coverage for farmers who use this practice.
To “split-apply” nitrogen, growers make multiple fertilizer applications during the growing season rather than providing all of the crop’s nitrogen requirements with a single treatment before or during planting.
PACE will provide payments for the projected yield lost when farmers are unable to apply the in-season nitrogen application.
“USDA is committed to building insurance options that encourage use of practices that are better for the environment and for producers’ bottom lines,” RMA Acting Administrator Richard Flournoy said. “We are able to offer the PACE thanks to the cooperation of our partners, including the Illinois Corn Growers Association, National Corn Growers Association, Ag-Analytics Technology Company and Meridian Institute.”
“Split application” of nitrogen can lead to lower input costs, as well as helps prevent runoff or leaching of nutrients into waterways and groundwater. This is because it is used in more targeted amounts over multiple applications, rather than one large application.
This new crop insurance option builds upon RMA’s efforts to encourage use of conservation practices, including cover crops.
RMA recently provided premium support for farmers who planted cover crops to help offset impacts from the pandemic. The agency also updated policy to allow farmers and ranchers with crop insurance to hay, graze or chop cover crops at any time and still receive 100% of the prevented planting payment. This policy change supports use of cover crops, which can help farmers build resilience to drought.
The Federal Crop Insurance Corporation Board approved PACE recently, and RMA will share additional details later this year. The sales closing date for the endorsement will be the same as the farmer’s underlying corn policy.
More Information
RMA staff are working with AIPs and other customers by phone, mail and electronically to support crop insurance coverage for producers. Farmers with crop insurance questions or needs should contact their insurance agents about conducting business remotely (by telephone or email). More information can be found at farmers.gov/coronavirus.
Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net at rma.usda.gov.
I like what you said that corn farmers who “split apply” nitrogen would soon have another option for insurance coverage. This is helpful because we just bought 14 acres of land to be planted for corn. Thanks for the tip. I will see to it that my farm will be insured for the safety of the investment.