Producers to Receive Automatic Prevented Planting ‘Top-Up’ Payments

The U.S. Department of Agriculture (USDA) announced today that producers currently participating in federal crop insurance who had in 2019 a payable prevented planting indemnity related to flooding, excess moisture or causes other than drought will automatically receive a “top-up” payment. Producers will receive the payment from their Approved Insurance Providers (AIPs) starting in mid-October.

Producers with Yield Protection and Revenue Protection with Harvest Price Exclusion will receive a 10 percent top-up payment, while producers with Revenue Protection will receive 15 percent. They do not need to sign up to receive payments; all producers with a 2019 prevented planting indemnity will receive the top-up.

“It was a challenging planting season for many of our farmers,” said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation. “We are doing everything we can to ensure producers receive the help they need.

“USDA is working with AIPs so that producers can receive additional payments as soon as possible,” Northey added, “and we appreciate the AIPs for helping us help America’s farmers.”

The crop insurance industry will deliver the payments as part of the Additional Supplemental Appropriations for Disaster Relief Act of 2019. After the initial payment, additional payments will be made in the middle of each month as more prevented planting claims are processed.

“Crop insurance is an important program for many producers to help them manage their production and price risks,” said Martin Barbre, Administrator of USDA’s Risk Management Agency (RMA). “We’re leveraging that system to efficiently and effectively deliver much needed support to our farmers.”

 

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