For the second year in a row, farmers who plant cover crops are eligible for a premium benefit of $5 an acre on most crop insurance policies, said the USDA’s Risk Management Agency on Thursday. Producers received $59.5 million in premium subsidies on 12.2 million acres of cover crops last year.
“Producers use cover crops to improve soil health and gain other agronomic benefits, and this program will reduce producers’ overall premium bill to help ensure producers can continue this climate-smart agricultural practice,” said RMA administrator Marcia Bunger.
To receive the premium benefit, farmers must report their cover crop acreage to their insurer and the USDA by March 15. The USDA said the premium benefit dovetails with other initiatives for climate-smart practices.