RMA announces extended deadlines, deferred interest due to COVID-19
The U.S. Department of Agriculture’s Risk Management Agency announced Aug. 5 it is authorizing approved insurance providers to extend deadlines for premium and administrative fee payments, defer the resulting interest accrual and allow other flexibilities to help farmers, ranchers, and insurance providers due to the COVID-19 pandemic.
RMA Administrator Martin Barbre said as a farmer himself he understands the pressures farmers are facing during this trying time.
“I understand how it’s important that we be flexible as we can,” Barbre said. “We’ve allowed virtual signatures on forms, which we’ve always required a wet signature before. We’ve allowed additional time for production reporting and additional time for producers to get their crop acres reported.”
According to Barbre and the release from USDA, the group is authorizing AIPs to provide policyholders additional time to pay premium and administrative fees and to waive accrual of interest to the earlier of 60 days after their scheduled payment due date or the termination date on policies with premium billing dates between Aug. 1 and Sept. 30. In addition, USDA is authorizing AIPs to provide up to an additional 60 days for policyholders to make payment and waive additional interest for Written Payment Agreements due between Aug. 1 and Sept. 30.
“So essentially, you would have to pay them on Aug. 15, which is the big one,” Barbre said. “They normally would have to pay that by Oct. 1 or interest would start to accrue. This year that won’t happen until Dec. 1.”
Producers would have until Dec. 1 to pay the premium and not have any interest added to their payment.
“But one thing to note when we do that, producers who do not get that paid by Dec. 1 will be going back to the original date when interest would have accrued,” Barbre said. “We’re giving you an extra 60 days to pay it, but make sure you get it paid during that time.”
RMA understands how farmers are facing uncertain times, and Barbre feels their pain. The agency hopes the delay of payment date helps their situation.
“Producers are cash crunched right now,” Barbre said. “This will allow them at least to get in and do some fall harvesting and get some money coming in before they have to make that payment.”
Secretary of Agriculture Sonny Perdue agreed and said USDA recognizes farmers and ranchers have been severely affected by the COVID-19 pandemic this year.
“To help ease the burden on these folks, we are continuing to extend flexibility for producers,” Perdue said in the press release. “The flexibilities announced today support health and safety while also ensuring the federal crop insurance program continues to serve as a vital risk management tool.”
Farmers with crop insurance questions should continue to contact their insurance agents directly, Barbre said. More information can be found at farmers.gov/coronavirus.
Crop insurance is sold and delivered solely through private insurance agents. A list of insurance agents is available online using the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net at rma.usda.gov.
Kylene Scott can be reached at 620-227-1804 or [email protected].
