The value of specialty crops covered by the Federal Crop Insurance Program (FCIP) has grown substantially since 2011. According to the U.S. Department of Agriculture (USDA), the value increased from about $12 billion to about $21 billion in 2020, not accounting for inflation. A report from USDA’s Economic Research Service (ERS) highlights recent changes in growers’ use of the Noninsured Crop Disaster Assistance Program (NAP) and FCIP. NAP is only available in counties that do not have enough data to provide FCIP products. The report also compares differences between conventional and organic farms and offers perspectives on choices related to program participation.
USDA’s Risk Management Agency (RMA) offered FCIP policies to 76 individual specialty crops in 2021. The “Specialty Crop Participation in Federal Risk Management Programs” report found that between 2015 and 2020, insurance coverage remained relatively popular. States that account for the most policies are top producers of fruits and vegetables, such as California, Florida, and Washington, and specialty field crops like dry beans or dry peas, which include Montana and North Dakota.
ERS found that states with fewer FCIP policies have a higher number of NAP applications. New York, North Carolina, and Puerto Rico had the highest number of conventional specialty crop NAP applications in 2020. The addition of buy-up coverage was likely a driving factor in making NAP a more attractive option for risk management. Applications for NAP coverage increased from about 8,000 in 2015 to over 9,000 in 2020.
The report notes that FCIP or NAP insured a large portion of acreage for some crops in 2017. About 93 percent of dry pea acreage, 87 percent of plum and cherry acreage, and 83 percent of tomato acreage was insured. However, FCIP or NAP covered less than 20 percent of the acreage of kiwifruit, strawberries, hazelnuts, and lettuce.
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