Smartstax Corn Hybrids Eligible for Crop Insurance Pilot Premium Rate Reduction Program In 2010

Date:10-06-2009

U.S. farmers who plant corn hybrids containing SmartStax, a multi-event technology developed by Monsanto Company and Dow AgroSciences LLC, in 2010 will be eligible to reduce their crop insurance premium rate as part of the Pilot Biotechnology Endorsement approved by the – USDA Federal Crop Insurance Corporation (FCIC), Board of Directors.

 

The Pilot Biotechnology Endorsement (BE) lowers crop insurance premium rates in 2010 for irrigated and non-irrigated corn farmers who meet the program eligibility requirements and plant certain qualifying hybrids in Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin.

 

"The addition of SmartStax hybrids to the Pilot Biotechnology Endorsement recognizes that the technology contributes to reduced production risk for U.S. farmers," said Matt Kirkpatrick, Monsanto Corn Traits Marketing Manager. "U.S. farmers who plant SmartStax in 2010 will not only be able to increase their yield through the 5 percent refuge allowed for the technology in these states, but they will also have the opportunity to save on crop insurance on both irrigated and non-irrigated acres."

 

"Participation by corn growers in the Pilot BE program in 2009 is expected to be greater than 2008 participation levels, and growers have experienced the yield improvement and risk reduction of stacked trait technologies," added Ben Kaehler, Dow AgroSciences Commercial Leader. "The addition of SmartStax in 2010 will expand growers trait options to receive a premium rate reduction on qualifying acres under next years Pilot Biotechnology Endorsement."

 

Expansion of Geogrpahy Also Approved

 

Inclusion of SmartStax in the Pilot Biotechnology Endorsement is one of three key actions the U.S. Department of Agricultures FCIC Board of Directors took on Sept. 16 that will benefit farmers who plant qualifying corn technologies, which now includes SmartStax.

 

Other actions by the FCIC Board of Directors include adding Colorado to the list of pilot states that participate in the program, bringing the number from 11 to 12 states; and expanding the premium rate reduction to eligible irrigated acres in all 12 states. Previously, irrigated acres planted to qualifying hybrids in Kansas and Nebraska were part of the program. For 2010, SmartStax hybrids and Monsanto qualifying triple stack technologies will be eligible for a crop insurance premium rate reduction in Colorado. Also, at this time, SmartStax and Monsanto qualifying triple stack technologies will qualify for premium rate reduction on irrigated acreage in all 12 states participating in the Pilot Biotechnology Endorsement.

 

The Pilot Biotech Yield Endorsement began in 2008 in four states. The cost of a total producer-paid premium during the 2008 pilot program was reduced on average by more than $3 per acre. Total savings for participating growers was estimated to be nearly $25 million within the pilot geography in 2008. In 2009, corn farmers in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin who planted eligible hybrids could qualify for a premium rate reduction. Savings under the 2009 pilot are expected to be similar to those experienced in 2008.

 

To be eligible for the premium rate reduction using Monsanto hybrids, at least 75 percent of the total insured corn acres, including replanted acres, on a unit basis must be corn for grain planted to hybrids containing SmartStax, Genuity™ YieldGard VT Triple PRO, YieldGard VT Triple, or YieldGard Plus with Roundup Ready Corn 2 technologies. Participation in this program does not replace the importance of growers respecting EPA-mandated refuge requirements.

 

FCIC approval of the Biotech Yield Endorsement for the 2008 crop year was the culmination of a Monsanto innovation wherein data from thousands of field trials were transformed into actuarial tables that demonstrated corn hybrids containing biotech traits reduce production risk for growers. Todays announcement of the inclusion of SmartStax in RMAs 2010 Pilot Biotechnology Endorsement Program is a result of collaborative efforts among scientists from Dow AgroSciences and Monsanto.