It may be months before USDA publishes a regulation but it is reminding farmers that the new farm policy law links so-called conservation compliance with eligibility for a discount on crop insurance. Operators have until next June 1 to file the paperwork, form AD-1026, the Highly Erodible Land Conservation and Wetland Conservation Certification. Many USDA farm support programs already require the certification. Under the federally subsidized crop insurance program, the government pays roughly 62 cents of each $1 in premiums.
USDA’s Economic Research Service says premium subsidies were a key factor in growth of crop insurance over the past two decades. The program now a premier component of the farm safety net. “Across all regions, for a 1-percent increase in subsidies, demand for crop insurance rose about 0.86 percent for corn, 0.74 percent for soybeans, and 0.64 percent for wheat in terms of total premiums,” says an ERS report.