By Larry Dreiling
Secretary of Agriculture Tom Vilsack Oct. 21 announced the implementation of a new farm bill initiative that will provide relief to farmers affected by severe weather, including drought.
The Actual Production History Yield Exclusion, available nationwide for farmers of select crops starting next spring, allows eligible producers who have been hit with severe weather to receive a higher approved yield on their insurance policies through the federal crop insurance program.
Spring crops eligible for APH Yield Exclusion include corn, soybeans, wheat, cotton, grain sorghum, rice, barley, canola, sunflowers, peanuts and popcorn. Nearly three-fourths of all acres and liability in the federal crop insurance program will be covered under APH Yield Exclusion.
Winter wheat, notably, was not on the list of eligible crops.
In a conference call with reporters announcing the new provision, Vilsack said “It’s a fact of the calendar that winter wheat election was made prior to Sept. 30. This was not a situation where we could make this announcement soon enough to impact winter wheat.
“The reality is that we cannot reopen that, because it would cause some serious actuarial concerns that would result in a bit of chaos in the markets, which we don’t think is appropriate, and it’s not the precedent we want to set.” [Read More]