The U.S. Department of Agriculture (USDA) has introduced a new crop insurance endorsement to help California winegrape growers protect against the effects of wildfire smoke. The Fire Insurance Protection- Smoke Index (FIP-SI) is set to launch as a pilot program for the 2025 crop year. USDA’s Risk Management Agency (RMA) is offering the protection option for grapes insured under the Grape Crop Provisions.
“With the increasing number and severity of natural disasters, the Risk Management Agency is pleased to give grape producers in California another option when it comes to managing risk,” Jeffrey Yasui, Director of RMA’s Regional Office that covers California said in a press release. “Even though smoke damage is covered in the producer’s individual policy, growers who have the endorsement attached to their individual policy can collect an indemnity under this endorsement if there is a sufficient number of Smoke Events in the county.”
Developed in collaboration with industry stakeholders like the California Association of Winegrape Growers, FIP-SI provides an additional layer of financial protection by covering part of the deductible when a county experiences a certain number of smoke events, as tracked by the National Oceanic and Atmospheric Administration. The endorsement can be combined with certain other coverage options but focuses on area-wide losses rather than individual vineyard yields. Growers have until January 31, 2025, to sign up.
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Brian German
Ag News Director / AgNet West