USDA’s New Crop Insurance for Tropical Storms Benefits Producers Impacted by Idalia

WASHINGTON, Sept. 20, 2023 – The U.S. Department of Agriculture’s (USDA) recent expansion of its hurricane crop insurance policy to cover tropical storms this year has already provided farmers with $85.4 million to help them recover from Hurricane Idalia. USDA’s Risk Management Agency (RMA) rolled out the new Tropical Storm Option for its Hurricane Insurance Protection-Wind Index (HIP-WI) Endorsement earlier this year after working directly with farmers to improve coverage. Additionally, through HIP-WI, producers have received $84.8 million in indemnities for hurricane-related losses for a total of over $170 million in crop insurance payments that will directly help farmers and rural communities recover from Hurricane Idalia. This coverage was unavailable this time last year.

“I commend farmers and their organizations for reaching out to RMA to discuss new coverage, and our staff for promptly working on creative solutions to make this coverage a reality,” said RMA Administrator Marcia Bunger. “This is just one of many examples of farmers and RMA working together to improve the lives of farmers and the rural economies that depend upon agriculture.”

So far, indemnities by state include:

• Georgia: $72.7 million for hurricanes, and $5.7 million for tropical storms;
• Florida: $12.1 million for hurricanes;
• North Carolina: $40.1 million for tropical storms; and
• South Carolina: $39.6 million for tropical storms.

Earlier this year, RMA added the Tropical Storm Option to this endorsement to cover named tropical storms, as reported by the National Oceanic and Atmospheric Administration (NOAA), with maximum sustained winds exceeding 34 knots and precipitation exceeding six inches over a four-day period.

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Read the entire USDA RMA press release here. Contact your trusted ProAg agent and find more information about HIP-WI here.