MD Makes Crop Insurance More Affordable

The State of Maryland recently funded a law that will reduce the cost of Federal crop insurance.

Beginning in spring 2002, a new State initiative will reduce crop insurance premiums by as much as $2 per acre. The actual amount of the subsidy will depend on participation by the state's farmers.

"Maryland has taken decisive action to help farmers manage their risk by reducing the cost of crop insurance,"said Phyllis W. Honor, Acting Administrator for the Risk Management Agency. "This additional subsidy could provide the incentive needed to convince an uninsured or under-insured farmer to buy protection for the first time or buy-up to a higher coverage level."

The subsidy became official following the signing of a Memorandum of Understanding between USDA, the Federal Crop Insurance Corporation, the State of Maryland, and participating crop insurance companies.

Eligible Maryland producers can obtain the additional subsidy through the five crop insurance companies participating in the program: Fireman's Fund, The Hartford, IGF Insurance Company, Rain and Hail, and Rural Community.