The U.S. Department of Agriculture’s Federal Crop Insurance Corporation (FCIC) has approved a new pilot insurance plan, Nutrient BMP Endorsement. The new insurance will be available to eligible farmers in Minnesota, Iowa, Wisconsin, and Pennsylvania for the 2003 season. The Nutrient BMP Endorsement is an optional endorsement to a farmer’s Multi-Peril Crop Insurance (MPCI) or Crop Revenue Coverage (CRC) crop insurance policies for corn.

Nutrient BMP Endorsement was created to give producers a risk management tool. Producers are required to follow their state’s extension service agronomic recommendations and best management practices (BMP) for nitrogen. Some producers maybe reluctant to adapt extension recommended applications rates because they believe these rates might not optimize their yield potential. In the event that lower nutrient application rates are recommended, this insurance could help manage the risk of a possible reduction in yield.