RISK MANAGEMENT

Current crop insurance programs need to provide adequate risk management for producers. Crop insurance reform must provide producers an acceptable level of risk management at an affordable cost for all crops.  (Revised 2009)

1. MGGA opposes any restrictions on eligibility for program participation based on a producer’s Adjusted Gross Income, any caps on thefederal cost‐share level and any restrictions on a producer’s ability to utilize the Harvest Price Option. (New 2017)

2. MGGA supports an inverted premium subsidy system that provides higher subsidies at the higher coverage levels.
3. MGGA supports continued improvement of revenue insurance products. (2008)
4. MGGA supports ‘T yields’, ECO and SCO yields that more accurately reflect actual yields in a production area excluding years of declared disaster. (2008) (Amended 2025)
5. MGGA supports an increase in the ‘T yield’ plug to 85% for all producers. (Revised 2020)
6. MGGA supports the separation of spring wheat, durum and winter wheat for crop insurance coverage levels. (Amended 2024)
7. MGGA supports the separation of crop practice (CC‐continuous crop or SF‐summer fallow) for optional unit structure on the same crop forindemnity payments. (Revised 2009)
8. MGGA supports the continuation of the winter coverage endorsement option crop insurance coverage.
9. MGGA supports implementation of adjustment yield losses of 90% or more to be paid at 100% for all crop insurance.
10. MGGA supports changes in crop insurance regulations to allow irrigated producers to maintain irrigated coverage in times of drought‐caused reductions in available irrigation water. (Revised 2009)
11. MGGA urges the use of quality adjustment factors that more accurately reflect market discounts.
12. MGGA supports reforming multi‐peril crop insurance (MPCI) quality loss adjustments for weather and disease related losses to reflect a change in market price instead of reducing production quantities by factors that do not reflect the current market. (New 2014)
13. MGGA supports the Risk Management Agency adoption of a separate quality loss discount schedule for DHV in spring wheat. (Revised 2016)
14. MGGA supports the preservation of optional crop insurance unit structures.
15. MGGA supports Risk Management Agency coverage of grain crops that are harvested for hay.
16. MGGA supports Risk Management Agency coverage that more accurately reflects contract price for seed stocks and specialty cropsthat are contracted through a licensed merchandiser or seed dealer.
17. MGGA supports a forage policy closing date and reporting deadlines that more accurately reflect the season in which the crop isplanted. (New 2013)
18. MGGA supports the producer’s right to accept or reject Risk Management Agency administrative policy changes implemented after thesign‐up date for that current year.
19. MGGA challenges the use of inequitable “pack factors” in determining grain volumes for crop insurance purposes.
20. MGGA requests an advance of no less than 75% of estimated indemnities in disputed and audit cases. (Revised 2009)
21. MGGA opposes automatic audits for indemnity payments less than $500,000 per crop. (New 2017)
22. MGGA supports a staggered penalty structure for crop insurance yield erroneous reporting of production. (New 2019)
23. MGGA supports Risk Management Agency crop loss coverage on all fire related losses. (New 2009)
24. MGGA opposes the reduction of crop insurance subsidies and also opposes premium subsidy and payment caps.
25. MGGA opposes means testing for federal crop insurance eligibility.
26. MGGA supports a provision to allow the transfer of existing APH databases if all involved parties agree. (New 2013)
27. MGGA seeks enforcement of legislation for segregated commodity traded funds to be protected and remain segregated. (New 2011)

28. MGGA supports changes to the federal bankruptcy law to protect a producer’s security interests. (New 2012)
29. MGGA supports higher bonding levels for online commodity brokerage. (New 2018)
30. MGGA opposes a producer funded elevator indemnity pool. (New 2011)
31. MGGA supports inclusion of information in grain purchase contracts which details the availability of bonding or insurance ondeferred payment agreements. (Revised 2012)
32. MGGA supports the Montana State Hail Board retaining a two‐year loss reserve. (New 2014)
33. MGGA supports voluntary crop insurance incentives for conservation practices including but not limited to cover crops. Theseincentives must take into account all cropping systems and be regionally specific, recognizing the different production systems. (New 2021)
34. MGGA supports margin protection coverage for all crop classes. (New 2022)
35. MGGA supports the Risk Management Agency broadening the list of insurable crops across all counties in Montana. (New 2022)

36. MGGA supports the Risk Management Agency offering coverage for intercropping practices. (New 2022)
37. MGGA supports Risk Management Agency extending the interest waiver for crop insurance premiums to November 30^th. (New 2024)
38. MGGA supports the creation of individual SCO and ECO coverage at comparable subsidy levels to existing county wide coverage. (New 2024)
39. MGGA supports the RMA using contract pricing to establish producer’s guaranteed coverage for all crops. (New 2025)
40. MGGA supports ensuring any disaster that creates an indemnity qualifies for disaster assistance. (New 2025)
41. MGGA supports the RMA adding DHV and HVAC as quality reduction factors for claims. (New 2025)
42. MGGA supports adding a quality loss option for all crops. (New 2025)