PACE and Split Nitrogen

OMAHA (DTN) -- Farmers who apply nitrogen with split applications for non-irrigated corn across parts of the Corn Belt will be eligible to buy a supplemental coverage for their crop insurance under a new USDA program.

The policy will pay farmers for projected yield losses when they cannot get into the field for that second nitrogen application during growing stages.

The Post Application Coverage Endorsement (PACE) will now be available as a supplemental insurance protection for farmers in "select counties" in Illinois, Indiana, Iowa, Kansas, Minnesota, Michigan, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. USDA rolled out details of the new insurance add-on Wednesday, citing that split-applications of nitrogen is a "practice that saves producers money and is considered better for natural resources." The practice of applying nitrogen in multiple treatments "can lead to lower input costs and helps prevent runoff and leaching of nutrients into waterway and groundwater."

The National Corn Growers Association noted the PACE policy was developed by the group as well as the Illinois Corn Growers Association, Ag-Analytics Technology Company, LLC, Meridian Institute and others submitted to the Federal Crop Insurance Corporation under provisions in the law allowing for private development of new crop products.

"PACE is an important addition to the risk management toolbox for corn growers," said National Corn Growers Association President Chris Edgington, an Iowa farmer. "We are appreciative of our industry partners and the Risk Management Agency for working to develop and deliver this new crop insurance product."

"We are proud to offer this new insurance option that encourages the use of conservation practices that benefit not just the environment, but also producers' balance sheets," said Marcia Bunger, administrator for USDA's Risk Management Agency. "America's agricultural communities are on the frontlines, crafting solutions to address climate change and improve the environment. Across USDA, we're adapting our programs to meet the needs of producers as well as the challenges they face."

Under PACE, farmers would receive a payment for projected yield losses when wet weather and field conditions make it unable for those producers to apply the second nitrogen application for non-irrigated corn when the crop is in the V3 to V10 growth stage. Farmers would add the PACE coverage to their Yield Protection or Revenue Protection and Revenue Protection with Harvest Price Exclusion policies. The first policy purchases will begin this year with the closing date for purchase of March 15.

V3 growth begins about two to four weeks after corn emergence with four to five leaves on the corn plants and V10 is in the range of roughly six to eight weeks as the corn stalk is typically just under five feet in height.

Producers who sign up for the PACE policy will need documentation to support the use of split applications for nitrogen that could include sales receipts for nitrogen, as well as dates the fertilizer was applied and application rates on acreage.

More information on PACE is available at the Risk Management Agency website: https://rma.usda.gov/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

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