Biotech Endorsement Program Saved Dollars
Both farmers and taxpayers save as a result of BYE.
Compiled by staff
Published: Jan 27, 2010
According to data from the pilot Risk Management Agency's Biotechnology Endorsement Program, reductions in U.S. crop insurance premiums resulted in significant farmer and taxpayer savings in 2009. U.S. corn farmers participating in the program are estimated to have saved more than $50 million in premiums, and savings to taxpayers are estimated at more than $75 million. The endorsement program lowers crop insurance premiums for irrigated and non-irrigated corn producers who plant qualifying hybrids.
The pilot Biotech Yield Endorsement program received Federal Crop Insurance Corporation approval in 2007 for the 2008 crop year. The pilot launched in four states was expanded this past year to a total of 11 states. Last year, program participation doubled to 11.8 million corn acres from 2008. Corn farmers in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin who planted eligible hybrids could qualify for a premium rate reduction.
Next year, corn farmers in Colorado will be added to the program and irrigated acres in all 12 pilot states will be eligible for the program. To be eligible for the premium rate reduction, at least 75% of the total acreage in an insured unit planted for grain, including replanted acres, must be planted to specified hybrids.
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