USDA announces details of new PACE insurance option for conservation-minded corn farmers

The USDA's Risk Management Agency (RMA) announced in a Press Release and Corn Product Management Bulletin (PM-22-001) on the new Post Application Coverage Endorsement (PACE) insurance program. PACE provides coverage for producers who “split-apply” nitrogen. To “split-apply” nitrogen, the producer makes multiple fertilizer applications during the growing season rather than providing all of the crop’s nitrogen requirements with a single treatment before or during planting.

The RMA is tentatively planning to conduct training for Approved Insurance Providers (AIPs) during the week of January 17, 2022. Once training has been completed by the RMA, NAU Country will prepare materials and host a webinar to inform our partnered agents.

For a list of all counties eligible for the PACE program click HERE.

Please read the full Press Release, Product Management Bulletin, and resources below for more details. Contact your NAU Country Marketing Representative if you have any questions.

Review the full Product Management bulletin HERE.
Read the full press release HERE.

WASHINGTON, January 5, 2022 – Corn farmers who “split-apply” nitrogen now have another option for insurance coverage. The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) today announced the details of its Post Application Coverage Endorsement (PACE) in certain states for non-irrigated corn, providing coverage for producers who use this practice to save producers money and is considered better for natural resources.

“We are proud to offer this new insurance option that encourages the use of conservation practices that benefit not just the environment, but also producers’ balance sheets,” said RMA Administrator Marcia Bunger. “America’s agricultural communities are on the frontlines crafting solutions to address climate change and improve the environment. Across USDA, we’re adapting our programs to meet the needs of producers as well as the challenges they face.”

PACE provides payments for the projected yield lost when producers are unable to apply the post nitrogen application during the V3-V10 corn growth stages due to field conditions created by weather. PACE is offered in select counties in 11 states, including Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. It is available as supplemental coverage for Yield Protection (YP), Revenue Protection (RP), and Revenue Protection with Harvest Price Exclusion (RP-HPE) policies. The first sales closing date to purchase insurance is March 15, 2022.

To “split-apply” nitrogen, growers make multiple fertilizer applications during the growing season rather than providing all the crop’s nitrogen requirements with a single treatment before or during planting. This practice can lead to lower input costs and helps prevent runoff and leaching of nutrients into waterways and groundwater.

This new crop insurance option builds upon RMA’s efforts to encourage use of conservation practices, including cover crops. For example, RMA recently provided $59.5 million in premium support for producers who planted cover crops on 12.2 million acres through the new Pandemic Cover Crop Program (PCCP). Additionally, RMA recently updated policy to allow producers with crop insurance to hay, graze, or chop cover crops at any time and still receive 100% of the prevented planting payment. This policy change supports use of cover crops, which can help producers build resilience to drought.

More Information

To learn more about PACE, visit the RMA’s Conservation webpage, which has frequently asked questions, a fact sheet and other resources.

The bulletin states that the following supporting documents have been updated on the RMA's website:

Additional References:

NAU Country News