Ag Journal Online is reporting a new yield exclusion provision for calculating crop insurance coverage. The provision is coming to the aid of farmers just when they need it most. The new arrangement benefits wheat growers more than anyone else, explains a leading crop insurance analyst.
Here’s how it works: If the average county yield for a crop drops 50 percent or more below average, a farmer can exclude that year from their production history. More than one year can be dropped, as long as it meets the criteria. That means farmers get more coverage just by staying at their current coverage level. It also means farmers can raise their yield guarantee without paying more for the additional coverage.
The yield exclusion provision was included in the 2014 Farm Bill at the insistence of Congressman Frank Lucas of Oklahoma. Lucas operates a farm in far western Oklahoma, the epicenter of the Dust Bowl.
