MWCA Crop Insurance Proposal Released
Sept. 6, 2023 — The Midwest Council on Agriculture board of directors has put forward proposals on improving crop insurance programs in the 2023 Farm Bill.
MWCA Crop Insurance Proposal for 2023 Farm Bill
o Increase the premium support on the highest coverage levels of Revenue Protection by one step:
§ 80% Level - From 68% to 77% premium support (equal to the 75% level)
§ 85% Level – From 53% to 68% premium support (equal to the current 80% level)
o Applicable to only enterprise and whole farm units
o Leave subsidies on other coverage levels and unit structures the same as current.
o Increase Enhanced Coverage Option (ECO) premium support from 44% to 80%.
Benefits
o Encourages farmers to insure at the higher levels.
o The need for ad hoc or permanent disaster programs will be reduced.
o Benefits all farmers in all parts of the country, all ages and all crops, including specialty crops.
o Applied to only enterprise and whole farm units reduces moral hazard of optional units and potential abuse of the program
Increase in ECO support encourages use of lower cost area yield plans in areas where underlying MPCI is still very expensive.
Examples
McLean County, ND
Soybeans
APH = 33
Level Bu Guar/a Liability/a Old Prem New Prem Rate
75% 25 $341 $5.30 $5.30 1.6%
80% 26 $363 $9.35 $6.75 1.9%
85% 28 $386 $17.25 $11.75 3.0%
Stutsman County, ND
Corn
APH = 139
Level Bu Guar/a Liability/a Old Prem New Prem Rate
75% 104 $616 $18.72 $18.72 3.0%
80% 111 $657 $30.57 $21.97 3.3%
85% 118 $698 $53.35 $36.32 5.2%
Marshall County, MN
Wheat
APH = 62
Level Bu Guar/a Liability/a Old Prem New Prem Rate
75% 46.5 $412 $11.07 $11.07 2.7%
80% 49.6 $440 $19.41 $13.95 3.2%
85% 52.7 $467 $35.44 $24.13 5.2%
Iroquois County, IL
Corn
APH = 178
Level Bu Guar/a Liability/a Old Prem New Prem Rate
75% 134 $789 $6.36 $6.36 0.8%
80% 142 $842 $12.21 $8.77 1.0%
85% 151 $894 $24.60 $16.75 1.9%
Dawson County, TX
Cotton-Irr
APH = 795
Level Guar/a Liability/a Old Prem New Prem Rate
75% 596 $501 $26.48 $26.48 5.3%
80% 636 $534 $48.08 $34.56 6.5%
85% 676 $568 $89.74 $61.10 10.8%
Van Buren County, MI
Blueberries-Irr
APH = 5233
Level Guar/a Liability/a Old Prem New Prem Rate
75% 3925 $ 3,336 $ 195.65 $ 100.00 3.0%
80% 4186 $ 3,558 $ 274.45 $ 121.39 3.4%
85% 4448 $ 3,781 $ 393.15 $ 202.92 5.4%
*Enterprise units are currently not available on blueberries, so this quote applies the new subsidy to the optional unit rate. If and/or when enterprise units are available, the premium and rate will be lower than the New Prem shown in this example.
Centre County, PA
Corn
APH = 143
Level Guar/a Liability/a Old Prem New Prem Rate
75% 107 $ 634 $ 14.20 $ 14.20 2.2%
80% 114 $ 676 $ 24.49 $ 17.60 2.6%
85% 122 $ 718 $ 43.82 $ 29.83 4.2%
Bulloch County, GA
Peanuts
APH = 3673
Level Guar/a Liability/a Old Prem New Prem Rate
75% 2755 $ 818 $ 19.57 $ 19.57 2.4%
80% 2938 $ 873 $ 33.97 $ 24.42 2.8%
85% 3122 $ 928 $ 61.30 $ 41.73 4.5%
Poinsett County, AR
Rice-Irr
APH = 7401
Level Guar/a Liability/a Old Prem New Prem Rate
75% 5551 $938 $ 13.21 $ 13.21 1.4%
80% 5921 $ 1,001 $ 21.59 $ 15.52 1.6%
85% 6291 $ 1,063 $ 38.10 $ 25.94 2.4%
Sumner County, KS
Wheat - Irr
APH = 52
Level Guar/a Liability/a Old Prem New Prem Rate
75% 39 $ 343 $ 11.10 $ 11.10 3.2%
80% 42 $ 366 $ 19.33 $ 13.90 3.8%
85% 44 $ 389 $ 34.95 $ 23.79 6.1%
ECO
95% Level
Crop County APH Lia/a Old Prem New Prem
Soybeans McLean, ND 33 $41 $14.30 $5.11
Corn Stutsman, ND 139 $74 $23.02 $8.22
Wheat Marshall, MN 62 $50 $15.86 $5.66
Corn Iroquois, IL 178 $95 $29.30 $10.45
Cotton-Irr Dawson, TX 795 $60 $23.01 $8.22
ECO – Enhanced Coverage Option
County-Based Coverage that covers bands of risk above RP.
· Insured can either elect ECO to go to 90% or 95% coverage
· ECO has a 44% Cost Share
· ECO is not dependent on the producer’s ARC/PLC election
