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Trend Adjusted Yields increasing the value of crop insurance to MD farmers

Lori Lynch and Paul Goeringer

Summary

Crop insurance has become an important risk management tools used by many Maryland farmers. Yet some farmers believe their calculated Average Production History (APH) does not reflect their true yields. The USDA’s Risk Management Agency (RMA), Center for Agricultural and Natural Resource Policy, and the Maryland Department of Agriculture partner to provide crop insurance products outreach and education in Maryland. In part to address farmers’ concern in Maryland and elsewhere, RMA approved a Trend-Adjusted Yield endorsement option for corn and soybean farmers on selected crop insurance products. This endorsement allows these farmers to take into account the natural upward trend in yields when determining their APH yields. The Trend Adjusted APH yield endorsement does not cost the producer anything but will change amount of coverage because it changes the APH and premium might increase. However, the same amount of coverage under the TA election always costs the same or less than under the regular APH. Our proposed poster is being used to present information on the Trend Adjusted APH yield endorsement. Our poster lays out the endorsement’s eligibility requirements, depicts an example of how the endorsement works, and shows the impact this election can have on coverage level decisions. The poster is displayed at the winter agronomy meetings in Maryland. This poster provides a quick way to get the information out when the county’s meeting may not have enough time for a crop insurance presentation.

Details

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