THE AGRICULTURAL RISK PROTECTION ACT OF 2000

Changes in the Crop Insurance Program

You Asked For Information On The Changes To Crop Insurance The Agricultural Risk Protection Act of 2000 (ARPA 2000) was passed on May 25, 2000 by both the House of Representatives and the Senate. The Act authorized $8.2 billion for crop insurance over the next five years.

The ARPA 2000 makes major changes in the crop insurance program. But remember, sometimes change is good!

If you have questions on any of the changes in the crop insurance program, please do not hesitate to contact Valley Farm Credit Vice President of Member Services Steve Grant. Steve can be reached at 540/662-3473, extension 113 or 1-800/999-5341, extension 113.

Better Coverage for Less Money!
Under the ARPA 2000, farmers will receive additional premium assistance at all levels of buy-up coverage. This will allow producers to buy better coverage for less money!

A farmer, who bought a crop insurance policy in 2000 to protect 60% of this approved yield, would have had 53.3% of the total premium paid by the U. S. Government. In 2001, the U. S. Government will pay 64% of the total premium for the same 60% protection level. This additional subsidy offered by the U. S. Government is meant to encourage America's farmers to purchase higher levels of crop insurance coverage.

Subsidy Levels for Crop Insurance--Old vs. New

Coverage Level	Old Law with 25% Discount for 2000	Law Effective 2001
CAT	100%	100%
50%	66.3%	67%
55%	59.6%	64%
60%	53.3%	64%
65%	56.3%	59%
70%	48.9%	59%
75%	42.6%	55%

Changes to the Actual Production History Will Give Farmers Better Levels of Protection The ARPA 2000 allows producers of Category B crops (coarse and small grains) with multiple years of disasters to record in their actual production history a yield equal to 60% of the county average for any year the actual yield falls below this amount. This is very important news considering the low crop yields that many producers experienced in past years.

So, a Rockingham County, VA farmer who had a per acre yield of 20 bushels of corn in 1999 would be allowed to substitute a yield of 57.6 bushels, if the approved county yield (i.e. - T-yield) is 96 bushels of corn.

Changes to the Administrative Fees The administrative fees applicable for the crop insurance policies have changed. The fees for CAT have increased from $60 to $100. But please note that for policies up to the 65% level, the fees have decreased by $20.00.

For policies of 65% or greater, the fees have increased by $10.00 over what a farmer paid in 2000.

Coverage Level	Old Law	New Law
CAT	$60/crop/county	$100/crop/county
Up to 65/100	$50/crop/county	$30/crop/county
65/100 or greater	$20/crop/county	$30/crop/county

The Farm Credit Promise Valley Farm Credit promises to work with a producer to obtain the coverage he/she wants and which best suits the needs of the farming operation. Working with Steve Grant means there is never any pressure to purchase crop insurance and there is never any minimum acreage requirement for purchasing crop insurance.

To date Steve Grant has assisted Virginia, West Virginia, Maryland, and Pennsylvania farmers and orchardists in obtaining insurance coverage on over 153,000 acres of crops.

For all your crop insurance needs, please contact Steve Grant at (540) 662-3473, extension 113 or at 1(800) 999-5341, extension 113, or via e-mail at stepheng@valleyfc.com.

Important Sales Closing Dates for Crop Insurance Promise

	Wheat	September 30
	Barley	September 30
	Apples	November 20
	Peaches	November 20
	Nectarines	November 20
	Grapes	November 20
	Corn(Grain)	March 15
	Corn(Silage)	March 15
	Soybeans	March 15
	Sorghum	March 15
	Oats	March 15

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