USDA Expands Discounted Crop Insurance

Farmers in 13 states now have the opportunity to reduce the cost of their crop insurance by up to 10 percent, in an innovative program approved recently by the U.S. Department of Agriculture (USDA).

Crop1 Insurance Inc. announced today that it has received approval from the USDA to offer federal crop insurance to farmers at a discount through the Crop1 Insurance Premium Discount Plan (PDP).

This is the second year in which the Des Moines-based company will offer a premium discount to farmers in Iowa, Illinois, Indiana, Kansas, Minnesota, Nebraska, and North Dakota. The company was also approved and is available to expand its coverage area to include Missouri, Ohio, South Dakota, and Wisconsin.

The Crop1 Premium Discount Plan (PDP) offers federal crop insurance for all crops that are insured under the federal program with discounts of up to 10 percent for standard federal crop insurance.
The crops available for the discount have been expanded from 2003.

Now, Crop1 can insure all crops under the federal program. These savings are available without reducing the farmer’s existing coverage. In fact, Crop1 has found that many farmers use the savings they offer to buy added protection from Crop1 at the same cost they would pay for lower coverage with other companies.

Crop1’s Premium Discount Plan results from a provision passed by Congress that was designed to increase competition. The USDA authorized Crop1’s Premium Discount Plan due to the fact that Crop1’s operating costs are lower than other crop insurance companies. In part, this is due to the way Crop1 uses the Internet to process information. This allows farmers to access policy information at their convenience, but does not require them to complete the application online. Local Crop1 agents and adjusters provide consultation and service.

Topics Agribusiness