The USDA’s is expanding its pilot Margin Protection Plan of Insurance to help protect farmers against unexpected decreases in operating margins.
The program is offered through the federal crop insurance program and provides margin protection for corn, wheat, rice, and soybeans. Beginning in 2018 it will be available in 11 more states (Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin) and has updates designed to better clarify input costs.
The expansion also includes a harvest price option, which potentially could provide farmers greater protection.
The last day to purchase a margin protection policy for corn, soybeans, and spring wheat is Sept. 30.
Margin protection insurance is privately-developed and first became available in 2016 to provide coverage based on an expected margin. It is area-based and can be purchased by itself or in conjunction with a Yield Protection or Revenue Protection policy.
Source: brownfieldagnews.com