USDA Extends Deadline, Defers Interest Accrual Due to COVID-19
The RMA says it will authorize Approved Insurance Providers to extend premium deadlines for fee payments, defer the resulting interest accrual, and give them other flexibilities. The goal is to help farmers, ranchers, and insurance providers who are affected by COVID-19.
“USDA recognizes farmers and ranchers have been severely affected by COVID-19 this year and to help ease the burden on these folks, we’re continuing to extend flexibility for producers,” says Ag Secretary Sonny Perdue. “These flexibilities will support health and safety while also ensuring the federal crop insurance program continues to serve as a vital risk management tool.”
AIPs can provide their policyholders with additional time to pay the premium and administrative fees and waive the accrual of interest to the earlier of 60 days after their scheduled payment due date or the termination date on policies with premium billing dates between August 1 and September 30, 2020.
USDA is also authorizing insurance companies to provide up to an additional 60 days for policyholders to make payment and waive additional interest for Written Payment Agreements due between August 1 and September 30, 2020.
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