Reductions in U.S. crop insurance premiums have resulted in significant farmer and taxpayer savings in 2009, according to data from the pilot Risk Management Agency Biotechology Endorsement program.

U.S. corn farmers participating in the program are estimated to have saved more than $50 million in premiums, and savings to taxpayers are estimated at more than $75 million in 2009.

The Biotechnology Endorsement pilot program lowers crop insurance premiums for irrigated and non-irrigated corn producers who plant qualifying hybrids. Monsanto Company (NYSE: MON) was the innovator of the pilot Biotech Yield Endorsement® program, which received Federal Crop Insurance Corporation approval in 2007 for the 2008 crop year.

The pilot launched in four states and was expanded this past year to a total of 11 states under the name Biotechnology Endorsement Program. Participation doubled to 11.8 million corn acres from 5.9 million corn acres in 2008. Corn farmers in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin who planted eligible hybrids could qualify for a premium rate reduction.

“Using RMA data, we estimate farmers and taxpayers derived significant economic benefit from our technologies,” said Matt Kirkpatrick, Corn Traits Marketing Manager. “Farmers planting qualifying corn technologies saved more than $50 million in insurance premiums, resulting in taxpayer risk subsidy savings of more than $75 million.”

The cost of premiums paid by producers during the 2009 Biotechnology Endorsement program was reduced on average by more than $4.24 per acre for those farmers who planted VT3 and other technologies, versus $3 per acre in 2008.

To be eligible for the premium rate reduction, at least 75 percent of the total acreage in an insured unit planted for grain, including replanted acres, must be planted to hybrids containing YieldGard VT Triple PRO, YieldGard VT Triple, or YieldGard Plus with Roundup Ready Corn 2 technologies. In 2010, program enhancements include the addition of SmartStax, the newest corn platform from Monsanto and Dow AgroSciences.

Other program enhancements include the addition of Colorado to the program, bringing the number of states participating in the program to 12; and the eligibility of irrigated acres in all 12 pilot states.