Hybrid Corn Reaps Insurance Premium Savings for Farmers
The U.S. Agriculture Department (USDA) has approved the expansion of a risk management program that will reduce crop insurance costs for farmers who plant 75% of their corn crops using certain biotechnically engineered corn seeds.
According to the USDA, the program covers certain corn seed hybrids with specific traits that enhance protection against above-ground pests such as moths and their larvae and below-ground corn rootworm damage, and also can well tolerate herbicide treatments.
Farmers who plant the designer corn hybrids will qualify for crop insurance premium reductions in some states. One of the corn producers, Monsanto Co., estimated premiums for certain policies were reduced on average by more than $3 per acre during the 2008 pilot program, with like savings expected in 2009.
"This program recognizes the reduced annual production risk that comes from using advanced seeds and technologies that have the possibility to increase yields and places that value back in the hands of growers," said Monsanto’s Tim Hennessy.
Published on August 21, 2008
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