New Crop Insurance Program for Farmers Who Split-Apply Nitrogen

USDA’s Risk Management Agency (RMA) recently announced a new crop insurance option for corn producers who split-apply nitrogen. 

The Post Application Coverage Endorsement (PACE) will be available for non-irrigated corn in select counties in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin as supplemental coverage for Yield Protection, Revenue Protection and Revenue Protection with Harvest Price Exclusion policies. 

PACE eligibility requirements include:
•    Underlying Yield Protection, Revenue Protection or Revenue Protection with Harvest Price Exclusion insurance policy.
•    Documentation to prove nitrogen was purchased for split application.
•    Pre-application amount must be at least 20% of a farmer’s total nitrogen to be applied but no more than 75%.
•    Report of acreage must include the intended total nitrogen application rate pre- and post-apply; the actual total nitrogen application rate pre- and post-apply; the number of acres in each unit in which a split-application practice was used; and the planting date for each unit.
•    Inability to apply the post-application of nitrogen during the insurance period due to weather and field conditions.

Coverage levels range from 75% and 90% for the pilot program. 

“America’s agricultural communities are on the frontlines crafting solutions to address climate change and improve the environment,” says Marcia Bunger, RMA administrator. “We are proud to offer this new insurance option that encourages the use of conservation practices that benefit not just the environment, but also producers’ balance sheets.”

PACE was developed by the Illinois Corn Growers Association, National Corn Growers Association, Ag-Analytics Technology Company, Meridian Institute and others, then submitted to the Federal Crop Insurance Corporation. 

National Corn Growers Association president Chris Edgington salutes the RMA for delivering “an important addition to the risk management toolbox for corn growers.”

As with other crop insurance programs for corn, PACE elections must be made by March 15, 2022. More information can be found here.