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USDA RMA enhances sorghum insurance for U.S. Farmers
USAgNet - 12/04/2023

In a major boost for U.S. agriculture, the USDA Risk Management Agency (RMA) has announced significant improvements to sorghum crop insurance, set to take effect in 2024. These updates are a welcome development for sorghum farmers nationwide, offering expanded production capabilities and stronger financial support.

A key highlight of these changes is the unprecedented increase in the sorghum price election factor, which will be set at 100.2% relative to corn - the highest level ever for sorghum. This marks the first-time sorghum has surpassed corn in this aspect, reflecting the strengthening market prices of sorghum.

National Sorghum Producers CEO Tim Lust views this as a major incentive for growers to increase grain sorghum production, thereby enhancing the industry's vitality and profitability.

Another significant update is the simplification of the sorghum silage insurance policy. The prior requirement of having a two-year history of growing irrigated silage has been removed in New Mexico, Oklahoma, and Texas. This change facilitates an easier transition for farmers experienced in irrigated grain cultivation, allowing them immediate access to sorghum silage insurance and enhancing their coverage.

The USDA RMA has eliminated the complex written agreement process for irrigated double crop sorghum, which was a requirement in 2023. This removal of red tape will encourage more farmers to grow sorghum following wheat, contributing to the diversification and resilience of U.S. agriculture.

NSP Chairman Craig Meeker emphasizes the importance of these improvements, noting that they represent significant progress for the sorghum industry. He also indicates ongoing efforts to further enhance sorghum insurance policies in collaboration with the RMA.

Farmers are advised to contact their local crop insurance agents for detailed information on these updates and how to leverage the enhanced sorghum crop insurance options. This development is a substantial step forward in supporting and empowering sorghum farmers across the United States.


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