New insurance options available for organic and specialty crops

WASHINGTON, D.C. - The USDA is rolling out several new and expanded insurance options for producers of organic and specialty crops.

Earlier this year, the agency announced it will be making enterprise units available for alfalfa seed, wild rice, forage grasses, mint, onions and potatoes beginning in 2024. Enterprise units are less expensive because they insure all acres of a crop grown in the same county together, as opposed to optional units which separate acreage into sections.

More benefits are now on the horizon, including a subsidy for organic farms and new policies for grapevines, kiwifruit, pomegranate, shellfish and indoor growing systems.

Marcia Bunger, who oversees the USDA's Risk Management Agency, said beefing up insurance for organic and specialty crops "speaks to the vision of this administration."

"While crop insurance has been very successful, it's traditionally been focused on your more historically traditional types of commodities," Bunger said, referring to crops like corn, soybeans and wheat. "As we start to look at all other areas of agriculture, there hasn't always been that availability."

From 1990 to 2022, liabilities for insured specialty crops rose by $1 billion to more than $23 billion, according to the USDA. Meanwhile, the number of individual specialty crops insured under crop insurance programs has increased by 27% over the last 20 years.

"At the end of the day, our producers really want to grow a good crop but they're at the risk of climate and catastrophic weather, Bunger said. "It's important for growers to be supported by consumers."

One new initiative, the Transitional and Organic Grower Assistance Program, or TOGA, was first offered in 2022. It provides an automatic subsidy for insurance premiums on certified organic farms, or farms that are transitioning to organic.

The subsidy is $5 per acre for certified organic grain and animal feed, and 10% of the insurance premium for other certified or transitioning organic crops.

Beginning in 2024, the USDA will also begin offering insurance for all types of grapevines in select states and counties, including California, Oregon, Washington and Idaho. This policy specifically covers vines damaged by hail, flood, fire and ice, and is meant to complement existing insurance for the fruit these vines produce.

Other new policies include:

Kiwifruit: Growers in 12 California counties will be able to insure three varieties of kiwifruit beginning in 2024, including Hayward, Mega and Red & Gold. Hayward currently makes up 92% of California's kiwi crop.

Pomegranate: Beginning in 2023, growers in select California counties were offered yield-based coverage for two types of pomegranate - the "Early" and "Wonderful" varieties.

Shellfish: A new policy is coming in 2024 for farmed oysters along the Pacific and Atlantic coasts, including California. The policy protects against named storms and hurricanes, excessive heat, freeze and low salinity.

Indoor growing: Specialty crop, organic and urban farmers who grow crops indoors, sometimes referred to as controlled environment agriculture, will have a policy of their own beginning in 2024 to protect against diseases in their facilities.

Bunger said the Risk Management Agency is also making the Quality Loss Option available for insurance policies covering certain specialty crops, including blueberries, cranberries, grapes, peaches, stone fruit and California avocados.

The Quality Loss Option will allow producers of these crops to add coverage for quality issues from pests and diseases, in addition to yield losses. Bunger said she expects more specialty crops to be added to the list in the coming months.

"We're committed to working with specialty crop and organic producers to develop crop insurance options that fit their needs," she said.

For more information about federal crop insurance, visit www.rma.usda.gov.

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USDA expands insurance options for specialty crops