Is PACE Coverage Right for You?

  • November 16, 2022

With expanded availability in more Midwest counties now for corn, are you considering adding this endorsement for 2023?

The PACE (Post-Application Coverage Endorsement) became available earlier this year for corn producers who utilize post-application nitrogen practices. Learn more about where coverage has expanded and if it’s the right fit for you. FMH sales team experts Ryan Benes and Ken Ripley answer common questions to help you decide.

What Is It?

PACE is an optional endorsement designed for producers that split-apply their nitrogen. The first application can be in the fall or spring; the second after the crop is up.

FMH Regional Sales Manager and Assistant Vice President of Sales Ken Ripley said, “This endorsement would protect them if they can’t get that second application in due to an insured peril. It this case we’re essentially talking about excess moisture.”

What Does It Cover?  

Ripley said there was a lot of confusion about PACE when it was first launched.

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“Some growers thought this product was a premium credit if they did this practice. They’re actually buying an endorsement that would pay if you can’t get your nitrogen applied. Then, it’s helping pay for the decrease in projected yield of your corn crop.”

Is PACE Available in My Area?

PACE coverage is available for non-irrigated corn in 11 Midwestern states. That includes select counties in Indiana, Kansas, Michigan, Nebraska, North Dakota, Ohio, and South Dakota. In late September 2022, the U.S. Department of Agriculture announced PACE is now offered in almost all counties within Iowa, Illinois, Minnesota, and Wisconsin. See the USDA county coverage map. 

Can you add PACE to an underlying policy?

FMH Strategic Account Manager Ryan Benes said, “You can add PACE to underlying buy-up policies like Revenue Protection (RP), Revenue Protection with Harvest Price Exclusion (RP-HPE), and Yield Protection (YP), but you cannot add PACE to CAT or catastrophic coverage.” He added, “It comes in different coverage levels including 75, 80, 85, or 90 percent.”

Producers can pick and choose which fields they want to insure – they don’t have to do every field in the county.

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“All acres would be insured unless you choose to not insure some, or those acres don’t qualify. Fields you use manure on wouldn’t be eligible.”



 To apply for PACE coverage, your FMH agent will need to know:  

  1. Your coverage level selection between 75-90%
  2. The percentage of nitrogen you expect to apply on your second application
  3. Which unit structure you qualify for: enterprise, basic or optional
  4. Acres you don’t want covered within the same county by the March 15 Sales Closing Date

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What Records Do I Need to Keep?  

When it comes to keeping records, producers will need to include each plant date for each field in their acreage report. It’s what determines the window for a second application.

For PACE losses, producers have 72 hours to notify their agent. An adjuster will need a producer’s nitrogen report which includes details on when the fertilizer was purchased, what type and brand it is, the end-value nitrogen (N), phosphorus (P), and potassium (K) applied, and total amount purchased. To prove the split application rate, the adjuster will also need the dates it was first applied, the amount, and the acres where it was applied.  

What Do Other Farmers Say?

As someone who manages his own farm operation, Ripley said, “PACE is targeted at those producers who like to apply their split application with a pull-type applicator. So now the tractor axle is the limiting factor against getting it on. If you’re putting it on with a sprayer or having the co-op come out and spray, I don’t know if it makes sense to get coverage because you’ll have a much wider window to apply.” 

PACE coverage might be a good fit for you if:

  1. You split-apply nitrogen with either a first application in the fall or spring, then post-planting with pull-type equipment.
  2. You’re in a midwestern county where coverage is available.
  3. You understand this endorsement protects against the inability to apply a second nitrogen application due to excess moisture.
  4. You’re good at keeping detailed records.

For more in-depth details on PACE coverage, listen to FMH’s InsureCast episode on PACE*, visit the RMA website, and talk to your FMH agent.

*To avoid confusion on product availability, please note this episode of InsureCast was recorded previously before the PACE county expansion was announced.