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USDA issues payment for Additional Payment Program II
Some crop insurance companies will be getting a one-time payment from the USDA for administering specialty crop insurance contracts in 2022 and 2023.
Tom Sell works with the Crop Insurance Professionals Association. He tells Brownfield while this doesn’t have a direct impact on farmers, it supports specialty crop insurance.
“In years like 2021 through 2023, row crop prices were really high. Lots of administrative and operating funds were sucked into servicing row crop policies. Specialty crop agents sustained a deep cut.”
Sell says the funding was part of the American Relief Act Congress signed into law last December.
“USDA provided $30 million to top up and restore.”
Congress reimburses some administrative and operating expenses to insurance providers who administer federal crop insurance policies.
USDA Risk Management Agency Administrator Pat Swanson says the assistance helps expand crop insurance to specialty crops.
A final rule implementing the Additional Payment Program II will be published in the federal register on Monday.
I don’t think insurance companies are hurting as badly as American tax payers.