WASHINGTON: The National Corn Growers Association praised the U.S. Department of Agriculture’s announcement that crop insurance premiums for corn will be rerated for the 2012 crop year.
“NCGA has been working on this issue for more than eight years,” NCGA President Garry Niemeyer, a corn farmer from Auburn, Ill., said. “We are pleased to hear our farmers will no longer be facing the continued widening gap between the loss for corn and the premiums charged to growers for policy coverage. This is a day long coming.”
The announcement stated the average premium for corn will be lowered by 7 percent beginning in 2012 and soybeans will be lowered by 9 percent. The rate adjustment is based on findings of an independent study and peer review process. The USDA’s Risk Management Agency also announced it will be releasing documents by Wednesday that outline premium rates and other program information for the 2012 crop year.
“Our farmers have historically paid more than their fair share of crop insurance premiums and we are pleased to see this is finally coming to an end,” Niemeyer said. “We will continue to work with the USDA as they implement these new premiums for the 2012 crop year.”