National Sorghum Producers commends the U.S. Department of Agriculture (USDA) Risk Management Agency (RMA) for creating enhanced coverage for irrigated grain sorghum producers. The new coverage will be effective November 30, 2022, for the upcoming 2023 crop year.
“This expanded coverage for irrigated sorghum producers is the culmination of a decade of work between NSP, Congress and RMA, and we thank the agency for continuing to work with our industry to improve coverage options for sorghum producers,” NSP CEO Tim Lust said. “Improved rates and yields for sorghum producers will offer a greater level of aid and new opportunity for the 2023 growing season.”
RMA said in its announcement it has developed a modification to the Area Risk Protection Insurance (ARPI) program to improve crop insurance options for irrigated grain sorghum producers in select counties in Colorado, Kansas, Oklahoma and Texas. This modification was pursuant to the 2018 Farm Bill, a policy component NSP advocated to include, that required RMA to research and develop potential improvements to insurance for grain sorghum.
RMA said it will now allow irrigated grain sorghum producers to index grain sorghum indemnities to corn, which will be used as a “proxy” crop, and producer data shows when there is a loss for irrigated corn, there is a high correlation to a loss for irrigated grain sorghum.
“The existing rates for irrigated corn will be used for irrigated grain sorghum and 80 percent of the irrigated corn yield will be used to determine the guarantee,” RMA said. “There is no change to the grain sorghum price. This modification will be available for Area Yield and Revenue Protection, as well as Area Revenue Protection with Harvest Price Exclusion. If there is not an irrigated corn ARPI offer in a county, there will not be an irrigated grain sorghum offer.”
NSP encourages producers to contact their crop insurance agent to learn more about the new coverage, and view the RMA fact sheet and frequently asked questions for more information.