USDA RMA Announces Continued Improvements to Sorghum Crop Insurance
WASHINGTON, DC (November 29, 2023)—The United States Department of Agriculture’s Risk Management Agency (USDA RMA) released several important updates to sorghum crop insurance that will continue to expand sorghum production and empower farmers across the nation. Effective in 2024, the price election factor for sorghum will be at its highest level ever relative to corn; simplifications made to the sorghum silage policy will offer more support to sorghum farmers; and a key barrier to insuring irrigated double crop sorghum was removed in certain areas.
The sorghum price election is determined by applying a multiplier to the corn crop insurance price. For 2024, this multiplier is 100.2%, the highest level ever for sorghum and surpassing corn for the first time in history.
“As sorghum prices continue to strengthen, this development is poised to bring substantial benefits to sorghum farmers by enhancing the financial protection of their sorghum crop,” NSP CEO Tim Lust said. “The higher sorghum crop insurance price will serve as a significant incentive for growers to expand grain sorghum production, ultimately boosting the sorghum industry’s vitality and profitability.”
Recognizing the substantial growth in irrigated sorghum silage and forage acreage on the High Plains and around the U.S., RMA is simplifying the process for insuring irrigated sorghum silage. The previous requirement of having two years of history growing irrigated silage as a condition of insuring irrigated sorghum silage under the sorghum silage policy has been eliminated in New Mexico, Oklahoma and Texas.
This change streamlines the transition for farmers who primarily have a history of growing and insuring irrigated grain. It allows them to immediately access crop insurance for irrigated sorghum silage under the sorghum silage policy, eliminating unnecessary barriers and ensuring they have the coverage they need. Similarly, the arduous written agreement process for irrigated double crop sorghum where it was required in 2023 has been removed for 2024, eliminating more barriers to growing sorghum following wheat.
“These updates to sorghum crop insurance represent continued improvements for the sorghum industry,” NSP Chairman Craig Meeker said, “and while we recognize they are significant, we will continue to work with RMA to improve sorghum insurance for our members.”
Farmers are encouraged to reach out to their local crop insurance agents for further details on these exciting updates and how they can benefit from the improved sorghum crop insurance options.
For more information, please visit USDA RMA or contact the National Sorghum Producers at 806-749-3478.
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NSP represents U.S. sorghum producers and serves as the voice of the sorghum industry coast to coast through legislative representation, regulatory representation and education. To learn more about NSP, visit www.sorghumgrowers.com.