New crop insurance pilot pays Michigan farmers to boost soil health

What’s Happening: The Michigan Department of Agriculture and Rural Development (MDARD) and its partners have launched the NextGen Crop Insurance pilot, giving Michigan farmers flexible coverage options that reward regenerative practices. Traditional insurance uses historical data that ignores soil health improvements, but NextGen offers lower premiums and dividend potential for farmers who reduce crop loss risk using cover crops, crop rotation, and reduced tillage. Supported by a $480,900 MDARD grant, the pilot utilizes a captive insurance model so farmers can pool resources and gain control over coverage pricing.

What they’re saying: “Current crop insurance coverage has yet to take farms like mine into account,” said Don Morse of Morse Farms, who farms over 3,000 acres of corn and soybeans in the Saginaw Bay Watershed. “After decades of practicing soil health, I am looking forward to seeing how my ongoing crop insurance costs will be positively impacted by enrolling in this program. Rewarding resilient farming practices is a positive step for agriculture.”  

Where to Apply Interested growers can visit the official the NextGen Crop Insurance web page for more information. Corn and soybean producers operating in Huron, Saginaw, Sanilac, and Tuscola counties who implement cover crops, diverse rotations, or no/low-till practices are eligible to participate.

What’s Next The pilot will enroll eligible regional farmers for the 2027 crop year. As data builds, the coalition plans to expand the NextGen model to additional states and crop types, establishing a modern template for how insurers, lenders, and investors price agricultural risk nationwide.