USDA Expands High-Risk Alternate Coverage Crop Insurance to Cotton as a Permanent Endorsement

Dec 01, 2022

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The U.S. Department of Agriculture (USDA) announced today that it will expand crop insurance coverage for the High-Risk Alternate Coverage Endorsement (HR-ACE) to cotton beginning with the 2023 crop year. In addition, USDA’s Risk Management Agency (RMA) has designated the HR-ACE as a permanent endorsement.

“By offering HR-ACE to cotton producers, it creates a level playing field with corn and soybean producers who already have this option in our region,” said Collin Olsen, director of RMA’s Regional Office in Topeka. “This is another insurance option for cotton producers in our region who want to insure their high-risk land at a higher coverage level than Catastrophic Risk Protection.”

The HR-ACE provides more options to producers who farm both high-risk and non-high-risk land. The Federal Crop Insurance Corporation’s (FCIC) Board of Directors approved changes to the HR-ACE on May 19, 2022, to expand coverage to cotton and convert the program from pilot to permanent status.

The HR-ACE cotton expansion area includes 111 counties in Arkansas, Kansas, Louisiana, Mississippi, Missouri, and Tennessee (maptext). Currently, there are approximately 35,000 insured acres of cotton planted on high-risk ground that will now be eligible for this endorsement. Additionally, a study of batture land required by the 2018 Farm Bill identified this as a needed change for the region.

Prior to expanding to cotton, the HR-ACE was only available for corn, grain sorghum, soybeans, and wheat. Now producers can purchase the HR-ACE for these crops, including cotton, to insure their high-risk and non-risk land on separate additional coverage policies. The coverage level on the policy for the high-risk land cannot exceed the coverage level on their non-high-risk policy. The HR-ACE is available for corn, cotton (beginning with 2023 crop year), grain sorghum, soybeans, and wheat for producers with high-risk and non-high-risk land in Arkansas, Illinois, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Ohio, Tennessee, and select counties in Iowa and Nebraska.

Source : usda.gov

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