Farmers are not complaining that their crop insurance premiums will be lower this year.
But they are concerned about a new crop insurance rule that is expected to cut the cost of corn and soybeans by more than half.
The rule, which goes into effect July 1, is designed to prevent farmers from having to buy insurance against the costs of crop damage.
It also will require farmers to buy crop insurance in the first year.
“I’m very worried about this rule because we need a lot of corn,” said Michael Schlosser, executive director of the Iowa State Fair Farmers Association.
“This is the first time since 2010 that there’s been any significant change.”
The insurance will cover damage to fields that are less than 10 inches wide and less than 15 feet high.
The insurance is available to farmers whose fields are 25 inches wide by 35 feet high, and is currently available to about 1,200 farmers.
Schlossers association is among the groups that filed a lawsuit against the Trump administration in the federal courts challenging the new crop rule.
The association argues the rule will cost farmers $3.5 billion in 2019, and that the federal government should cover the cost.
The rules will also eliminate the requirement for farmers to purchase insurance for any crop damage that exceeds $10,000, and will require that farmers pay $10 a tonne of corn or soybeans if they have a crop that has been damaged.
It will also make it easier for farmers in the Midwest to sell their crops under an insurance program that allows them to buy the insurance for only one year at a time, instead of two.
“The farmers will be able to sell the crop for much lower premiums than they would be able under a traditional crop insurance program,” Schlosses said.
“We’re not going to be able buy them all at once, but they will be more than offset by the premium savings.”
SchlossER said the corn crop insurance could have significant impact on corn farmers.
“In terms of our insurance premiums, it’s a very significant benefit,” Schlosers said.
The Trump administration will announce the new rule later this month.
“It’s going to impact a lot more than just corn,” Schravers said.
Corn farmers are one of the main customers for corn insurance.
SchlosERS association is working to get the rule passed in the statehouse.
“At this point, we’ve got a lot going on,” Schosser said.