What is in this article?:
- New risk management options available
- Options are simplified in new plan
- Cottonseed option added for 2011
Thinning out the alphabet soup of acronyms that populate the federal crop insurance program and eliminating duplicative policy provisions was a major goal of the recently completed USDA Risk Management Agency effort to develop the new combination insurance plan that will be used to establish yield and revenue coverage starting with the 2011 crop year.
Add in the new Cottonseed (Pilot) Endorsement and it’s clear that cotton producers across the nation have an exciting new risk management option to consider and a new set of acronyms as they finalize 2011 risk management plans.
While the new Combo plan provisions do not eliminate the specialty products available to growers, they do try to simplify choices and align terminology for the two most used types of insurance sold—yield and revenue coverage.
The new combination plan, also known as the Combo rule, revises the Common Crop Insurance Regulations to combine the Actual Production History (APH), Crop Revenue Coverage (CRC), Revenue Assurance (RA), Income Protection (IP), and Indexed Income Protection plans into a single plan.
These five plans represent the products producers have previously bought most often. Under the Combo plan these policies will be governed by a single set of program regulations and use common terminology to describe various aspects of the coverage they provide.