The U.S. Department of Agriculture (USDA) is updating the Hybrid Vegetable Seed (HVS) crop insurance program to clarify the definition of “Minimum Guaranteed Payment” and adding stage guarantees. These changes are being made to protect program integrity to ensure the continued viability of the program.
“Making our risk management resources remain viable and available to as many producers as possible is a top priority for us,” said Ben Thiel, Director of the Spokane Regional Office for USDA’s Risk management Agency (RMA). “That’s why we continually monitor program performance and listen closely to the feedback and requests from insurance companies and producers. It is vital that we identify and address program performance concerns as soon as possible to ensure producers continue to have access to our programs.”
HVS crop insurance is a Yield Based Dollar Amount of Insurance offered in five counties in Oregon and one in Washington, covering spring and winter types of hybrid carrot seed. In crop year 2023, more than 42 policies sold and $7.9 million worth of liabilities through HVS.
RMA is expanding the definition of “Minimum Guaranteed Payment” to include any minimum payment amount applicable to purposes specified in the processor seed contract, and any other contract or payment amount issued by the processor or seed company. This more inclusive definition will help to ensure that the policy does not over-pay losses or create adverse incentives.
RMA is also modifying the HVS program to allow stage guarantees to address early season losses.
- Stage One will allow 40 percent of the insurance guarantee to be paid for unharvested fields and will better reflect the costs incurred.
- Stage Two will be for harvested fields and allow 100 percent of the insurance guarantee.
The intent of the stage guarantees is to strengthen the HVS program by creating a guarantee that is more reflective of the amount of loss at the time the loss occurred.
Source : usda.gov