Crop insurance options for specialty crop and organic producers are being bolstered by recent actions from the U.S. Department of Agriculture (USDA). Responding to feedback from agricultural producers across the nation, USDA’s Risk Management Agency (RMA) is providing new insurance options and improving longstanding programs. Liabilities for insured specialty crops surged from $1 billion to over $23 billion between 1990 and 2022. RMA Administrator Marcia Bunger said the latest actions will help to better meet the needs of producers.
New insurance options will include the Transitional and Organic Grower Assistance Program (TOGA). This program reduces overall crop insurance premiums, providing benefits such as a 10% premium subsidy for transitioning crops and a $5 per acre premium benefit for certified organic grain and feed crops. RMA has also introduced a Tropical Storm Coverage option under the Hurricane Insurance Protection – Wind Index (HIP-WI). The new option will cover damage caused by named tropical storm weather events.
Starting in 2024, producers in select counties in California, Idaho, Michigan, New York, Ohio, Oregon, Pennsylvania, Texas, and Washington can insure grapevines comprehensively. It will cover freeze, fire, hail, flood, irrigation water supply failure, and other causes. Similarly, kiwifruit producers in 12 California counties can insure against unforeseen weather perils, covering three varietal groups. In 2023, pomegranate producers in select California counties can also receive yield-based insurance coverage for standard weather, natural, and environmental perils, including quality losses.
Improved crop insurance options for the 2024 policy year involve the Whole-Farm Revenue Protection Program (WFRP). Updates include expanded coverage levels, affordable policies for single commodity producers, a 10-year maximum yield history, and customization options. Updates were also made to Micro Farm coverage, including a shifted sales closing date, eligibility for vertically integrated entities, and the availability of the Expanding Operations feature. The Pistachio policy has also been revised to encompass insurance for producers with less than four years of production records and clarifications on yield calculations. Additionally, the Quality Loss Option is now available for initial specialty crops like avocados, blueberries, cranberries, grapes, peaches, stone fruit, and table grapes. There are also plans to extend the coverage to more crops pending further review.
Brian German
Ag News Director / AgNet West