The U.S. Department of Agriculture (USDA) today announced a new peanut revenue policy that will be available for eligible peanut producers. The policy, approved by the Federal Crop Insurance Corporation (FCIC) Board of Directors, paves the way for USDA's Risk Management Agency to make it broadly available to producers for the 2015 crop year in all counties where yield-based insurance coverage is currently offered.
The peanut revenue policy is one of several new risk management options authorized by the 2014 Farm Bill that will help farmers manage risks beyond their control. The Georgia Peanut Commission and the Western Peanut Growers developed the policy under section 508(h) of the Federal Crop Insurance Act, which allows private entities to design and submit crop insurance products to the FCIC Board.
"This policy will help extend revenue insurance coverage to peanut producers to help them manage risks," said Deputy Secretary Krysta Harden. "My parents are hardworking peanut producers in a small town in Southwest Georgia, so I know first-hand how important this new policy will be to provide a lifeline to farmers affected by events beyond their control."
The new insurance policy, which will be offered through the federal crop insurance program, replaces current peanut crop provisions. The policy will be based on the Common Crop Insurance Policy currently available for other major commodities and provide growers with a choice of Yield Protection, Revenue Protection, and Revenue Protection with the Harvest Price Exclusion. Available coverage levels will range from 50 percent to 85 percent. Information on the new peanut revenue policy for 2015 will be available on the Risk Management Agency's website later this fall.
Today's announcement was made possible by the 2014 Farm Bill. The 2014 Farm Bill builds on historic economic gains in rural America over the past five years, while achieving meaningful reform and billions of dollars in savings for taxpayers. Since enactment, USDA has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative public-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing and community facilities to help improve quality of life in rural America.
