Farm insurance coverage is now being expanded for many state farmers, but the coverage is a new issue for many farmers and ranchers.
In a recent blog post, the Department of Agriculture (USDA) posted some of the key details about the changes and how the changes will affect the lives of thousands of farmers and ranching families.
The most obvious change is that if you own a farm or ranch in the state of Texas, you will now have a federal Farm Insurance Premium Tax Credit (FIPTC) to help you pay for your farm insurance.
The FIPTC helps farmers pay for their farm insurance premiums and is funded by the farm program known as the Farm Credit Program.
The FIPCT is meant to cover the cost of farm insurance in states that offer Farm Credit Programs.
“Farm credit programs are a key part of the Federal Farm Policy Act, which was passed in 1958 to help farmers in the Midwest and Northeast who were losing out to competitors and who were struggling to meet their costs because of a lack of insurance,” said USDA spokesman Jeff Davis in a press release.
“The FipTC is intended to support low-income farmers and provide assistance to those who are unable to purchase farm insurance because of FIPC programs.”
Additionally, there is now an additional credit available to farmers to help cover the costs of farm property insurance.
This is to help offset some of their farm expenses.
The new FIPT credits will provide the same assistance that is currently available to FIPAC recipients.
Farm insurance premiums are now capped at a rate of $5,600 for individual farm policies and $7,500 for family farm policies.
This new limit will be in effect through the end of 2019 for policies purchased on or after January 1, 2020.
“This means that farm insurance policies purchased prior to January 1st, 2020 will remain capped at $5 to $7 million per farm, but will now be capped at up to $12 million per family farm, as compared to the current cap of $3 million per household farm,” the USDA said.
The FIFPA also allows a family to opt out of Farm Insurance for any year the policyholder is 65 years old or older.
The USDA said it has a list of requirements to make sure that everyone has access to the new Farm Insurance.
For 2018, the FIFPTA caps the maximum value of farm policies at $4,500 per household per year.
As the USDA noted, there will be a new cap for the FIPTX that will be adjusted every year.
The $4 million limit will increase by $1 million every year until 2019.
If you are a family farm that is older than 65 and have Farm Insurance, you may qualify for a waiver that will allow you to purchase Farm Insurance that is up to the limit of $12,000 per household, according to the USDA.
The new Farm Credit programs are funded by Congress and USDA.
However, they are not funded by farmers.
It is important to note that if your family owns a farm and you do not qualify for Farm Credit, you are not covered by the new FIFPC, but are eligible for the existing FIPPC.