The Risk Management Agency has approved a pilot program that will offer premium rate discounts on crop insurance to corn growers in Iowa, Indiana, Illinois and Minnesota planting specific biotech seed.
"Because of current technology and some genetic modification, the farmer and of course the insurance company has less risk in production with triple stack technology that in this case is brought forth by the Monsanto company," says RMA Administrator Eldon Gould.
The Federal Crop Insurance Corporation approved the biotech yield endorsement under a section of the Federal Crop Insurance Act.
"Monsanto was just the first company that came forth with a proposal or submission under the 523 category," Gould says. "We would encourage other companies that have similar technology available to come forth with submissions, so that if possible we could offer a discount for their proposals."
RMA is still determining whether the pilot program will begin with the 2008 or 2009 crop year. To listen to a discussion of the pilot program by Iowa State University Extension economist William Edwards and ISU Extension agronomist Roger Elmore, click HERE.