USDA Introduces Insurance Policy For Farmers Who Sell Locally

USDA's Risk Management Agency created this new policy based on research directed by the 2018 Farm Bill. The policy will be available beginning with the 2022 crop year.

The Micro Farm policy is available to producers who have a farm operation that earns an average allowable revenue of $100,000 or less, or for carryover insureds, an average allowable revenue of $125,000 or less. RMA's research showed that 85% of producers who sell locally reported they made less than $75,000 in gross sales.

The policy is offered through Whole-Farm Revenue Protection, and it has distinct provisions that can provide more access to the program, including:

No expense or individual commodity reporting needed, which simplifies record-keeping requirements for producers;Revenue from post-production costs, such as washing and packaging commodities and value-added products, are considered allowable revenue.

"We are excited to offer this new coverage for producers who work to provide their communities with fresh and healthy food," said Richard Flournoy, RMA acting administrator. "USDA is focused on supporting local and regional food systems, and this new crop insurance policy is designed with this important sector of agriculture in mind."

The Federal Crop Insurance Corporation approved the Micro Farm policy in late September. More details about the policy will be available this fall.

Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. For more information about crop insurance, go to rma.usda.gov.