Farmers nationwide can expect expanded insurance options for a crop gaining popularity in the energy sector. The U.S. Department of Agriculture's Risk Management Agency (RMA) has announced major updates to the Camelina crop insurance program, effective for the 2026 crop year. James Bellmon, Regional Office Director for the RMA in Oklahoma City, stated that these updates were developed through cooperation with industry stakeholders to more effectively meet the needs of producers.

"RMA worked closely with stakeholders to develop these improvements," Bellmon said in the news release. This integrated approach is set to systematically advance the insurance framework for Camelina, ensuring it now expands to cover organic production and contractual growth tied to futures price. The initiative to provide nationwide coverage for this crop through written agreements represents a policy change reflecting its increased presence within the agricultural sector.

Historically, some Camelina processors have linked contracts to fluctuating soybean futures, causing Camelina prices to mirror soybean market movements. Bellmon explained that Camelina insurance will now use these contracts to establish a more secure insurance guarantee. This agreement must be finalized by the acreage reporting date to protect producers from market fluctuations.

The RMA's update highlights Camelina’s increasing role as a biofuel crop and offers additional financial protection for farmers. To maintain pricing flexibility, the RMA is implementing a one-week period to average the futures prices specified in processor agreements when setting the insurance guarantee. This approach allows producers to secure favorable deals with their soybean futures while providing a stable basis for insurance coverage.

Source - https://hoodline.com