USDA to Defer Interest Accrual on Spring Crop Insurance

Posted on 08/15/2019 2:56 PM

USDA’s Risk Management Agency announced today that it will “will defer accrual of interest for all agricultural producers’ spring 2019 crop year insurance premiums to help the wide swath of farmers and ranchers affected by extreme weather in 2019. Specifically, USDA will defer the accrual of interest on spring 2019 crop year insurance premiums to the earlier of the applicable termination date or for two months, until Nov. 30, for all policies with a premium billing date of Aug. 15. For any premium that is not paid by one of those new deadlines, interest will accrue consistent with the terms of the policy.”

Without this change, policies with an Aug. 15 premium billing date would have interest attach starting Oct. 1 if premiums were not paid by Sept. 30. Now, under the change, policies that do not have the premium paid by Nov. 30 will have interest attach on Dec. 1, calculated from the date of the premium billing notice.

Find more details here.

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