Corn and soybean producers in more than 1,000 U.S. counties have been added to a federal insurance option that covers unexpected decreases in operating margin, the U.S. Department of Agriculture announced recently.

The expansion of the Margin Protection insurance plan "is in direct response to growing interest among producers," the USDA states in its March 30 announcement. The Margin Protection plan expansion will add coverage in 1,729 counties for corn and 1,255 counties for soybeans, announcement reports. Plan protection is also available for corn in the contiguous U.S., and for rice in select counties in Arkansas, California, Louisiana, Mississippi, Missouri, and Texas; and wheat in select Minnesota, Montana, North Dakota, and South Dakota counties. 

“Increasing the availability of a program is sometimes the best way we can improve upon an effective program and serve our farmers with more risk management resources,” Marcia Bunger, administrator for the Risk Management Agency (RMA), said in the news release. 

Margin Protection was implemented for the 2016 crop year to protect against decreases in margin caused by "reduced county yields, reduced commodity prices, increased price of certain inputs or any combination of these issues," the release states."It is area-based, using county-level estimates of average revenue and input costs to establish the amount of coverage and indemnity payments."

The Margin Protection coverage can be purchased independently or along with a Yield Protection or Revenue Protection policy purchased from the same approved insurance provider that issued the Margin Protection policy; Margin Protection can't be purchased with Supplemental Coverage or Enhanced Coverage options, according to the news release. Crop insurance is sold and delivered only through private crop insurance agents, the release reports. 

 “This expansion of Margin Protection will provide a viable insurance option for so many more farmers across the country," Bunger said in the news release, "giving them greater protection possibilities, and helping us continue our commitment of increasing the availability and effectiveness of Federal crop insurance as a risk management tool.”