There is a new wrinkle in crop insurance for 1995 crops. Farmers and landlords participating in USDA commodity programs, the Conservation Reserve Program, and certain Farmers Home Administration loans will be required to obtain a minimum level of crop insurance in 1995. The Federal Crop Insurance Act of 1994 provides for this minimum level of insurance coverage referred to as the catastrophic coverage level (CAT coverage). The administrative fee is $50 per crop per county with the maxi-mum cost not to exceed $200 per producer per county, or $600 per producer if farms are in several counties.

CAT coverage provides for pre-vented plantings as well as crop losses. Yield coverage will be based on the Actual Production History Plan (APHP) of the Multiple Peril Crop Insurance (MPCI). Losses in excess of 50 percent of the APHP yield will be paid at 60 percent of the expected market price. Thus, CAT coverage is similar to the recent disaster assistance program levels. However, CAT coverage is an individual farm insurance coverage.

Farmers may obtain CAT coverage from their Farm Service Agency (formerly ASCS) or from private insurance agencies until March 15, 1995. Higher levels of coverage, referred to as “Additional Cover-ages,” are available only through private insurance agents. Both the APHP and the Group Risk Plan (GRP) are available for most crops in 1995.

Farmers with historical yield information for 4 or more years can qualify for insurance yields based entirely on their past experience. All crops which contribute, or are expected to contribute, 10 percent or more of total expected crop receipts must be insured. Crops for which crop insurance has not been avail-able will have coverage under the Non-Insured Assistance Program (NAP).

Additional information will be available through a Cooperative Edu-cation Service program on February 14, 1995. Contact your county Extension office for further information about the meeting.