Flued Cured Tobacco Crop Insurance Changes

Per Product Management Bulletin PM-21-064, the U.S. Department of Agriculture’s Risk Management Agency (RMA) is implementing improvements to the flue cured tobacco crop insurance policy for the 2022 and succeeding crop year.  The improvements are a result of feedback from producer groups and other industry stakeholders regarding the contracted tobacco features added in 2021.  The updates are expected to strengthen the program going into 2022.  Specific changes include:

• Correct weighted average contract price calculations to ensure the producer’s choice of coverage level does not impact their price for insurance purposes;
• Clarification that the deadline to submit contracts is the acreage reporting date;
• Allowance for production agreements to be in the name of either spouse for spousal entities; and
• Allowance of 10% tolerance for over-planting in excess of the contracted production amount and remain eligible for the weighted average price.

Please access the following hyperlink for the full Bulletin: https://rma.usda.gov/en/Policy-and-Procedure/Bulletins-and-Memos/2021/PM-21-064

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