The U.S. Department of Agriculture (USDA) Risk Management Agency (RMA) created enhanced coverage for irrigated grain sorghum producers. The new coverage will be effective November 30, 2022, for the upcoming 2023 crop year.
RMA said in its announcement it has developed a modification to the Area Risk Protection Insurance (ARPI) program to improve crop insurance options for irrigated grain sorghum producers in select counties in Colorado, Kansas, Oklahoma and Texas. This modification was pursuant to the 2018 Farm Bill, a policy component NSP advocated to include, that required RMA to research and develop potential improvements to insurance for grain sorghum.
RMA said it will now allow irrigated grain sorghum producers to index grain sorghum indemnities to corn, which will be used as a “proxy” crop, and producer data shows when there is a loss for irrigated corn, there is a high correlation to a loss for irrigated grain sorghum.
The existing rates for irrigated corn will be used for irrigated grain sorghum and 80 percent of the irrigated corn yield will be used to determine the guarantee. There is no change to the grain sorghum price. This modification will be available for Area Yield and Revenue Protection, as well as Area Revenue Protection with Harvest Price Exclusion. If there is not an irrigated corn ARPI offer in a county, there will not be an irrigated grain sorghum offer.