PACE - USDA's new tool for corn farmers

Mar 11, 2024

By Farms.com

In an innovative step towards supporting the agricultural community, the USDA's Risk Management Agency has unveiled the Post-Application Coverage Endorsement (PACE) for non-irrigated corn farmers. This initiative, slated for the 2024 crop year, aims to mitigate the financial risks associated with the inability to apply nitrogen fertilizer during critical growth phases due to adverse weather. 

PACE eligibility covers a wide range of states, including Illinois, Indiana, Iowa, Kansas, Minnesota, Michigan, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. Farmers in these states are encouraged to check their eligibility and secure PACE through their insurance agents by the March 15, 2024, deadline. 

Designed as an event-based insurance, like hail coverage, PACE addresses the specific challenge of weather preventing post-planting nitrogen. It serves as an endorsement to existing policies like Revenue Protection or Yield Protection, offering a safety net for farmers when weather conditions disrupt their nitrogen application plans. 

Farmers must actively initiate the claim process for PACE by reporting the acres affected by the inability to apply nitrogen. This direct involvement ensures that the insurance meets the immediate needs of producers facing these challenges. 

Given its status as a pilot program, the future expansion of PACE will depend on its success and the feedback received from the farming community. This reflects the USDA's adaptive approach to supporting agriculture, emphasizing the integration of conservation practices into comprehensive risk management solutions. 

PACE represents a forward-thinking approach to crop insurance, aligning financial security measures with the realities of modern farming. By addressing the specific needs of non-irrigated corn farmers and emphasizing conservation, PACE underscores the USDA's commitment to fostering sustainable and resilient agricultural practices.

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