What percentage is known as DDA in crop insurance?

The term DDA in crop insurance refers to the Deferred Payment Discount Amount. This is a percentage that can be applied when certain premiums are paid outside of the regular payment schedule, typically allowing a discount for early or timely payments. The DDA is set at 10%, which indicates that policyholders can receive a discount on their premiums if they meet specific payment conditions.

Understanding the DDA is important for farmers and policyholders as it provides an incentive for early payments, helping to manage cash flow and reduce overall insurance costs. By recognizing the value of this discount, farmers can make more informed financial decisions regarding their crop insurance coverage.