USDA Defers Interest on Insurance Premiums

The Department of Agriculture will defer accrual of interest for all producers’ spring 2019 crop year insurance premiums. USDA says the move will help farmers impacted by extreme weather this year. 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 November 30, for all policies with a premium billing date of August 15, 2019. For any premium that is not paid by one of those new deadlines, interest will accrue consistent with the terms of the policy. One of the largest operating costs for producers is crop insurance premiums paid to their Approved Insurance Provider. Many spring crop insurance premiums are due before October 1. Without the interest deferral, policies with an August 15 premium billing date would have interest attached starting October 1 if premiums were not paid by September 30. Now, policies that do not have the premium paid by November 30 will have interest attached on December 1, calculated from the date of the premium billing notice.