USDA Expands Crop Insurance Benefits with One Big Beautiful Bill
The USDA has announced significant enhancements to area-based crop insurance coverage, following the passage of the One Big Beautiful Bill. These changes, unveiled by USDA Risk Management Agency Administrator Pat Swanson, are set to bring notable financial relief to farmers across the country.
“For the underlying policies, what the new law includes is an additional 3 to 5 percent of premium support from the government,” said Swanson. “So every policy with the underlying revenue protection policy, they will get an additional 3 to 5 percent of premium support. That’ll help all of our farmers.”
This move is expected to keep an estimated $400 million in the pockets of farmers, rather than being spent on insurance premiums. This extra support is part of a broader push by the USDA to strengthen the safety net for producers and enhance risk management tools.
In addition to this premium support, coverage levels are increasing across several programs:
- Whole Farm Revenue Protection has been expanded from 85% to 90% coverage, giving producers an extra 5% cushion against losses.
- The Supplemental Coverage Option (SCO), an area-based plan, will also rise from 86% to 90% coverage, offering more robust protection against regional losses.
Swanson added, “The area plans will also have an additional 15 percent of premium support on the premium itself. So increasing levels of coverage and additional premium support.”
These enhancements are designed to make crop insurance more accessible and affordable, particularly for producers facing volatile weather patterns and market uncertainty. By increasing government support and raising coverage limits, the USDA aims to strengthen the resilience of American agriculture.
Farmers are encouraged to contact their local crop insurance agents to understand how these updates might affect their existing policies and what options are available during the next sign-up period.
Audio Reporting by Dale Sandlin for Southeast AgNet.