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Case Study

Illinois Cover Crop Premium Discount Program (Fall Covers for Spring Savings)

COUNTRY/REGION

United States

START - END DATE

2025 - Ongoing

REALM

Terrestrial

The Illinois Department of Agriculture Cover Crop Premium Discount Program promotes additional acres of cover crops not covered by other state and federal program incentives. Eligible applicants receive a premium discount up to $5 per acre on the following year’s crop insurance for every cover crop acre enrolled and verified in the program. The inaugural season resulted in an additional 50,000 acres of cover crops planted, with 70% of applicants identified as planting cover crops for the first time.

The 2025-2026 program will fund up to 190,000 acres, with 40,000 acres funded by the Illinois Environmental Protection Agency via Gulf Hypoxia Funding. Illinois is one of the leading contributors to the Gulf of Mexico’s dead zone, a barren area of around 4,500 square miles deadly to fish, shrimp and other marine life. The Illinois Nutrient Loss Reduction Strategy recognises cover crops as one of the most effective in-field management strategies to stem the loss of nitrate-nitrogen and total phosphorus from corn-soybean fields.

Insurance trigger type

The mechanism by which an insurance payout or financial response is activated

Indemnity

Insurance scheme target

Beneficiary of Insurance Scheme

Real Economy

Insurance scheme developer

The type of institution(s) providing insurance or guarantees

Public

Insured risk

The primary category of risk addressed or managed by the insurance solution.

Physical Risk to People/Assets/Economic Activity

Insurance product type

Adapted from UNEP FI framework subcategories

Insurance for solutions integrating, incentivising or enabling nature-related risk reduction and mitigation

Partners:

American Farmland Trust, Illinois Corn Growers, Illinois Stewardship Alliance, the Association of Soil & Water Conservation Districts, The Nature Conservancy, Delta Institute, Prairie Rivers Network, the Izaak Walton League, Illinois Environmental Council, the Illinois Department of Agriculture, USDA's Risk Management Agency

Referred by:

NATURANCE