The Common Crop Insurance Policy, Area Risk Protection Insurance Policy, Rainfall Index Plan Common Policy and Whole-Farm Revenue Protection Pilot Policy state that interest will accrue starting the first day of the month, following issuance of the notice of premium due by the Approved Insurance Provider (AIP), provided that a minimum of 30 days has passed from the premium billing date.
On August 5, 2026 the USDA announced that it will provide additional time for policyholders to make payment of premium and administrative fees (MGR-26-009). Interest accrual on premium payments and administrative fees will be waived to the earliest of an additional 60 days of the scheduled payment due date or the termination date for policies with premium billing dates between July 1, 2026 and September 30, 2026. After this time, interest will accrue at the standard rate of 15% per annum.
Some examples of this are provided below for your reference.
For a policy with a 7/1/2026 billing date and a 9/30/2026 termination date:
Normally, to avoid interest, an insured must pay premium by July 31, and as of August 1, the insured owes the premium plus one month of interest. Under MGR-26-009, no premium interest will be owed unless the insured has not paid the premium by the termination date of 9/30/2026. Then, as of the termination date of 9/30/2026, the insured would be placed on the Ineligible Tracking System (ITS) for nonpayment and interest will accrue until the balance is paid in full.
For a policy with an 8/15/2026 billing date and a 2/28/2027 or 3/15/2027 termination date:
Normally, to avoid interest, an insured must pay premium by September 30, and as of October 1, the insured owes the premium plus one month of interest. Under MGR-26-009, no premium interest will be owed unless the insured has not paid the premium by November 30. Then, as of December 1, the insured would owe the premium plus one month of interest. Interest will continue to accrue until the balance is paid in full.
For a policy with an 8/15/2026 billing date and an 11/20/2026 termination date:
Normally, to avoid interest, an insured must pay premium by September 30, and as of October 1, the insured owes the premium plus one month of interest. Under MGR-26-009, no premium interest will be owed unless the insured has not paid the premium by the termination date of 11/20/2026. Then, as of the termination date of 11/20/2026, the insured would be placed on the ITS for nonpayment and interest will accrue until the balance is paid in full.
For a policy with a 9/1/2026 billing date and an 12/01/2026 termination date:
Normally, to avoid interest, an insured must pay premium by September 30, and as of October 1, the insured owes the premium plus one month of interest. Under MGR-26-009, no premium interest will be owed unless the insured has not paid the premium by the termination date of 12/1/2026. Then, as of the termination date of 12/1/2026, the insured would be placed on the ITS for nonpayment and interest will accrue until the balance is paid in full.
Please note that premium is still considered due, and the interest waiver does not impact withholding administrative fees and premiums from claim payments.