NATIONAL CROP INSURANCE SERVICES
7201 West 129th Street, Suite 200
Overland Park, KS 66213
FOR IMMEDIATE RELEASE January 15, 2004
For more information contact Jan Eliassen at 410-778-0120.
Information in this release comes from data provided by the Risk Management
Agency.
New insurance policy protects against mad cow losses
AGR-Lite deadline is January 31
Spongiform Encephalopathy (BSE), more commonly known as “mad cow disease,” has
caused beef prices to fall quickly. Dairy producers’ income will also be
affected because of the price drops for culls, calves, and feeder animals.
A new, federally subsidized, whole farm insurance policy, just approved for
Northeastern states, AGR-Lite insures against just this kind of loss for small
and medium-sized producers.
Developed by the Pennsylvania Department of Agriculture and available in
Pennsylvania in 2003, AGR-Lite has been modified based on feedback from
Pennsylvania producers. It is now approved for all Northeastern states for
2004 but producers have only until January 31 to sign up.
AGR-Lite insures total farm revenue, which is the gross income or revenue from
all farm sales. Most crops, animals, animal products, nurseries, greenhouses,
Christmas trees, and turf are among the products covered by this insurance. It
is based on the average of five years of gross agricultural income from
Schedule 1040F or substitute form on which farmers report profits for federal
income taxes. For 2004, 1998-2002 taxable revenue will be used for this
average.
Farmers with revenue up to about $500,000 are eligible for AGR-Lite. Like
other insurance, it does not cover all income losses but does provide a floor
under revenue.
To sign up for AGR-Lite, producers must contact a private crop insurance agent
before the January 31 sign-up deadline.
