In a letter to USDA’s Federal Crop Insurance Corporation, South Dakota Farm Bureau President Scott VanderWal encouraged the agency to expand coverage of the Biotech Yield Endorsement (BYE) to South Dakota for the 2009 growing season.

Currently, the pilot program is available for non-irrigated corn only in Illinois, Indiana, Iowa and Minnesota.  VanderWal in his letter pointed out that South Dakota corn growers who comply with the requirements of the BYE and who want to manage their risk more effectively should also have the opportunity to receive a discount on their crop insurance premiums.

VanderWal also asked the agency to analyze the impact of adding irrigated corn to the BYE. 

“The BYE discount represents real savings to growers,” he noted.  “In 2008, the savings may range from $3 to $7 an acre for farmers in the four pilot states who are using revenue-based crop insurance products such as Crop Revenue Coverage or Revenue Assurance.  Undoubtedly, expansion of this program will encourage more currently-insured growers to buy up coverage and prompt uninsured growers to purchase insurance.” 

VanderWal wrote, “The BYE is particularly timely given current volatile market conditions wherein there is unprecedented demand for significantly higher and stable levels of corn production.  We strongly believe that expanding availability of the BYE to all corn growing states will help growers meet these market challenges while making premium rates reflect the lower risk inherent to the BYE-qualified technology.”

“With rising land costs, cash rents, input and energy costs, corn producers in our state understand the risk associated with corn production and would welcome the opportunity to participate in the BYE,” he added.

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