HARRISBURG, Pa. — Pennsylvania farmers insuring their crops with a buy-up policy may be eligible for an automatic premium reduction of up to $150 per policy thanks to $1.76 million in assistance available through the USDA Risk Management Agency.
The premium reduction assistance will be applied automatically to all eligible 2011 policies with acreage-reporting deadlines before Sept. 30. If the total producer-paid premium is less than $150, the amount of premium reduction will be capped at 100 percent of the producer premium due.
Producers will receive assistance for each eligible policy, not to exceed $50,000. Administrative fees will not be covered. Catastrophic Risk Protection policies and policies or endorsements insured under the Livestock Risk Protection and Livestock Gross Margin (dairy) plans of insurance are not eligible for this financial assistance.
In total, Pennsylvania farmers are expected to receive nearly $45 million in premium assistance for the 2011 crop year, including $500,000 in state crop insurance assistance and approximately $43 million as part of the standard federal subsidy.
In the last five years, $140 million in crop insurance loss payments have been paid to producers compared to $76 million in paid premiums — a more than $1.83 return on every dollar invested.
To find a crop insurance agent, visit www3.rma.usda.gov/tools/agents. For more information on Pennsylvania’s crop insurance program, visit www.agriculture.state.pa.us and search “crop insurance” or call 717-705-9511.