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FCIC Board approves Biotech Yield Endorsement 2008
USDA's Risk Management Agency (RMA) announced that the pilot Biotech Yield Endorsement (BYE) will be implemented beginning with the 2008 crop year in the states of Illinois, Indiana, Iowa, and Minnesota.
The BYE will provide producers a premium rate reduction if they plant non-irrigated corn for grain containing three specific biotech traits - YieldGard® Corn Borer, YieldGard Rootworm and Roundup Ready® Corn 2, which are only marketed under the trade names of "YieldGard® Plus with Roundup Ready® Corn 2" and "YieldGard VT Triple."
Producers with an individual yield or revenue insurance plan (APH, RA, or CRC) at a buy-up level of Federal crop insurance coverage will be eligible for the discount on any unit in which they plant at least 75% of their non-irrigated corn for grain acres to a qualifying corn hybrid. RMA will release the BYE, containing the eligibility criteria, and instructions to approved insurance providers in the near future. This endorsement does not waive or otherwise affect the Environmental Protection Agency's (EPA) existing refuge requirements. Producers will be expected to be in full compliance with all EPA requirements, the agency noted.
RMA officials also note that the BYE is not an endorsement of any particular brand of seed, but this is the only submission to be approved thus far. The BYE was co-submitted to the FCIC by Monsanto Company and Western Agricultural Insurance Company.
"The BYE pilot program rewards corn growers for using technologies that helps them manage risk on their farms," said Robb Fraley, Executive Vice President and Chief Technology Officer for Monsanto Company. "Much like a 'safe-driver' discount in auto-insurance, this program recognizes that our technologies are able to consistently deliver higher yields year after year."
Monsanto officials say the average cost of a total policy premium will be reduced by approximately 14% on revenue assurance policies, such as Actual Production History, Revenue Assurance, and Crop Production Coverage. On average, this discount will amount to more than $2 per acre on the grower-paid portion of the premium.
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