When natural disasters hit and finances get tight, there is often a rise in anxiety and depression. Lenders could prove critical in helping their borrowers understand the multitude of risk management tools available.


2018 Farm Bill


The new five-year federal law was enacted in December 2018 and is currently being implemented by the USDA. Funding includes over $6 billion annually for commodity crop and livestock programs including the ARC/PLC (Agriculture Risk Coverage/Price Loss Coverage) program for crops and improvements to the Livestock Indemnity Program (LIP). The Farm Bill provides over $7 billion annually for crop


insurance programs as farmers will continue to receive crop insurance subsidies. They typically purchase farm-level revenue protection products that guarantees revenue using the farm’s actual production history (APH) times their choice of coverage-level times the higher of the projected spring price or the harvest price.


Multi-Peril Crop Insurance


Embedded in these crop insurance policies is coverage for replant, delayed and prevented planting. A farmer unable to plant a covered crop can still receive up to 55 percent of the original revenue guarantee for corn and 60 percent of the original guarantee for soybeans.


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