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New Pandemic Cover Crop Program Benefits Produces and Supports Climate Smart Production Practices

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WASHINGTON, Feb. 10, 2022 – Agricultural producers who have coverage under most crop insurance policies are eligible for a premium benefit from the U.S. Department of Agriculture (USDA) if they planted cover crops during the 2022 crop year. To receive the benefit from this year’s Pandemic Cover Crop Program (PCCP), producers must report cover crop acreage by March 15, 2022.  The new program comes on the heels of the recently announced Partnerships for Climate-Smart Commodities which creates market opportunities for U.S. agricultural and forestry products that use climate-smart production practices and include innovative, cost-effective ways to measure and verify greenhouse gas benefits.

PCCP, offered by USDA’s Risk Management Agency (RMA), helps farmers maintain their cover crop systems, despite the financial challenges posed by the pandemic and is part of USDA’s Pandemic Assistance for Producers initiative, a bundle of programs to bring financial assistance to farmers, ranchers and producers who felt the impact of COVID-19 market disruptions. 

“Cultivating cover crops requires a sustained, long-term investment, and the economic challenges of the pandemic made it financially challenging for many producers to maintain cover crop systems,” said RMA Administrator Marcia Bunger. “Producers use cover crops to improve soil health and gain other agronomic benefits, and this program will reduce producers’ overall premium bill to help ensure producers can continue this climate-smart agricultural practice.” 

PCCP was first offered in 2021, and producers with crop insurance received $59.5 million in premium subsidies for 12.2 million acres of cover crops. 

About the Premium Benefit 

PCCP provides premium support to producers who insured their crop with most insurance policies and planted a qualifying cover crop during the 2022 crop year. The premium support is $5 per acre, but no more than the full premium amount owed.  

Illinois, Indiana, and Iowa have existing programs for producers to receive a premium benefit for planting cover crops. In these states, participating producers will receive an additional benefit. 

All cover crops reportable to FSA are eligible and include cereals and other grasses, legumes, brassicas and other non-legume broadleaves, and mixtures of two or more cover crop species planted at the same time.   

To receive the benefit for this program, producers must file a Report of Acreage form (FSA-578) for cover crops with USDA’s Farm Service Agency (FSA) by March 15, 2022. The cover crop fields reported on the Report of Acreage form must match what the producer reported to their insurance company for crop insurance policies. To file the form, producers must contact and make an appointment with their local USDA Service Center. 

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Tobacco Update

Risk Management Agency (RMA) has finally given tobacco producers a much-needed price increase.  This year, conventional flue-cured tobacco has been increased to $1.95. Organic is $0.90 without a contract, up to $4.50 (maximum over established price $1.95).  Fire cured and burley stayed the same at $2.15.

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For 2022 RMA made the following changes:

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· The price election calculation will use your farms approved yield instead of guarantee as in 2021.

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· Allow a producer to be eligible for the contracted tobacco price election up to 110% of the tobacco insured under their contract; meaning you have 10% above your contracted pounds.

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· Spouse’s name will be considered sufficient for a married individual’s insurance policy.

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· Clarified that the “maximum over established price” is used when determining the calculated discount factor for quality adjustment.

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· Organic growers will have to provide 3 years of sales records.

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We will be reaching out individually to review 2022 coverage/changes as well as obtaining a copy of your contracts.

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