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Dicamba damage raises insurance questions

Crop damage from off-target movement of dicamba has brought up insurance questions from growers. Ray Massey, University of Missouri professor of economics, says many farmers were surprised to learn that off-target dicamba damage to their crops is not covered by federal crop insurance. But, he says, the USDA’s Risk Management Agency did make a helpful change, “They changed it to where if you do have a third-party damage, you do not have to include that damaged area in your Actual Production History (APH) calculations. So, the damage will be that year but it won’t be in subsequent years by holding your APH down, your Actual Production History.”

Massey says growers have to report damages to their insurer within 72 hours. He says general liability coverage might help with third-party herbicide injury but it’s important to make sure, “You don’t want to just have the status quo bias of ‘well, I had insurance last year and it was sufficient so I must have proper insurance this year.’ No, there’s a new game in town in agriculture, I want to make sure that I’m covered for that game.”

Massey says liability insurance usually covers accidental tank contamination and drift but says it’s less clear whether herbicide injury caused by volatility is a covered loss.

Audio: Interview with Ray Massey at 2017 University of Missouri Crop Management Conference: