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New Crop Insurance Offerings

One way to drive broader adoption of conservation on working lands is by developing new crop insurance products that cover the risk of adopting new practices. Through the USDA Risk Management Agency (RMA)’s 508(h) process, external partners can develop and propose new federally-subsidized crop insurance offerings. These proposals require extensive actuarial analysis and data to develop. They undergo a rigorous peer-review process by the Federal Crop Insurance Board before they are considered for approval.

The Post-Application Coverage Endorsement

In January 2022, the RMA announced the Post-Application Coverage Endorsement (PACE) as a new product available to purchase in select counties in 11 Midwestern states. PACE provides supplemental coverage to farmers who plan on split-applying nitrogen but are prevented due to field conditions caused by adverse weather, resulting in crop yield loss. 

Corn needs nitrogen at specific times during the crop’s growth cycle. If farmers apply the nitrogen too early, it can run off and cause water quality problems instead of being utilized by the plant. If farmers split-apply, a practice where they make two or more fertilizer applications during the growing season, they can increase efficiency, decrease nitrogen runoff, and optimize their financial investment. Read more about the product on the PACE website

Learn more about the PACE product in this short video:

A technical video explanation of PACE is available from the University of Illinois farmdoc program.

Driven by Data: Webinar on the Post-Application Coverage Endorsement

Recent innovations are helping the federal crop insurance program better account for the impacts of conservation practices on agricultural risk. During an Agri-Pulse webinar in March 2022 a panel of experts, including Meridian Institute CEO Todd Barker, discussed the benefits of PACE and the future of crop insurance.