Department of Agriculture Amends Crop Insurance Rules to Aid Drought-Stricken Farmers

Washington – The Department of Agriculture (USDA) announced Tuesday that it will move forward with plans to change the way that crop production history is calculated to ensure that farmers hit by droughts can receive sufficient crop insurance coverage.

USDA will allow farmers to drop low-yield crops in calculating their Actual Production History (APH), which allow them to qualify for higher insurance levels. Under APH plans, producers are paid an indemnity if the amount harvested is less than the predicted yield.  

APH serves as a picture of how much a farming operation generally produces, and low-yield crops from bad seasons can drag it down, distorting production numbers. Under the provision, producers nationwide can remove bad yields from APH if overall yields in the counties where they farm are at least 50 percent below average. Amongst the crops that can be excluded are corn, soybeans, wheat, cotton and rice.

“Farmers keep food on our tables and strengthen local economies,” said U.S. Rep. Pete Gallego. “This announcement from USDA means that American farmers can continue producing affordable crops without the uncertainty that natural disasters—like droughts—can cause.”

The new APH provision safeguards farmers from the economic disaster of a bad crop yield. This means more farmers in business and more choices for American consumers.

According to USDA, the new provision will be available to farmers beginning with 2015 spring crops.

For more information on U.S. Rep. Gallego, visit www.gallego.house.gov. Learn more about U.S. Rep. Gallego by liking his Facebook page or by following him on Twitter.

U.S. Representative Pete P. Gallego, D-Alpine, represents the 23rd District of Texas, which includes all or parts of 29 counties in southwest Texas, stretching from San Antonio to El Paso. He serves on the House Armed Services and House Agriculture Committees.