Rain and Hail / A Chubb Company

Industry Update

Crop Insurance Industry to Deliver Supplemental Disaster Prevented Planting Payments

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Rain and Hail has entered an agreement with the Risk Management Agency (RMA) to deliver prevented planting supplemental disaster payments to our policyholders who are eligible for payments based on USDA rules. These payments provide assistance to producers who were prevented from planting eligible crops due to excess precipitation, flood, storm surge, tornado, volcanic activity, tropical depressions, hurricanes and cyclones in the 2019 crop year based on USDA rules.

Prevented planting supplemental disaster payments for prevented planting losses will be calculated by RMA based on all qualifying prevented planting payments received for insured crops. For insured crops with a plan of insurance that provides revenue protection, the qualifying prevented planting payments will be multiplied by a factor measuring yield and price loss. For all other crops, the qualifying prevented planting payments will be multiplied by a factor based on yield only. Additional adjustments may apply if the qualifying prevented planting payments are reduced due to errors or other irregularities. The values used for the factors will be 15 percent for those producers with revenue protection except those who select the harvest price exclusion option and 10 percent for those producers who do not have revenue protection.

The Disaster Relief Act requires all participants who receive disaster payments to purchase crop insurance or NAP coverage for the next two available crop years. Participants who receive a prevented planting supplemental disaster payment must obtain crop insurance or NAP, as applicable, for the crop in the county. Participants may meet the Disaster Relief Act’s purchase requirement by purchasing Whole-Farm Revenue Protection crop insurance coverage, if eligible.

We will start making prevented planting supplemental disaster payments at the end of October. All of these payments will be made directly to the policyholder via check.

View the language in the Federal Register

Thank you,

Rain and Hail Corporate Office

9200 Northpark Drive, Suite 300
Johnston, IA 50131
www.RainHail.com

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