New 2014 Farm Bill Policy Provides Improved Safety Net for Specialty Crop Growers and Diversified Farm Operations
The U.S.
Department of Agriculture’s (USDA) Risk Management Agency (RMA) announced the new Whole-Farm Revenue Protection insurance policy which is now available
for the 2015 crop year. The policy allows producers to insure between 50 to 85
percent of their whole farm revenue and makes crop insurance more affordable
for producers, including fruit and vegetable growers and organic farmers and
ranchers.
Whole-Farm
Revenue Protection allows these growers to insure a variety of crops at once
instead of one commodity at a time. That gives them the option of embracing
more crop diversity and helps support the production of a wider variety of
foods.
“USDA is
committed to making crop insurance available and affordable to as many
producers as possible. Whole- Farm Revenue Protection is another example of how
we’re working with, and listening to, producers to create a safety net that
meets their specific needs,” said RMA Administrator Brandon Willis.
The 2014 Farm
Bill allowed RMA to create the whole-farm crop insurance policy. However, RMA
began working on this policy months before the 2014 Farm Bill was passed.
Through input from key stakeholders, the Whole-Farm Revenue Protection
insurance includes a wide range of available coverage levels, coverage for
replanting, provisions that increase coverage for expanding operations, a
higher maximum amount of coverage, and the inclusion of market readiness costs
in the coverage. Whole-Farm Revenue Protection is tailored for any farm with up
to $8.5 million in insured revenue, including farms with specialty or organic
commodities (both crops and livestock), or those marketing to local, regional,
farm-identity preserved, specialty, or direct markets.
The whole
farm policy is available in most states. The new policy will also provide a
whole-farm premium subsidy to farms with two or more commodities as long as
minimum diversification requirements are met, which means purchasing crop
insurance will be more affordable for producers. Whole-Farm Revenue Protection
can be purchased in conjunction with individual crop policies as long as those
policies are at a buy-up coverage level.
More
information, including availability of the product, can be found on RMA’s wholefarm web page.
Federal crop insurance is sold and delivered solely
through private insurance agents. Contact a local insurance agent for more
information about the program. A list of insurance agents is available at all
RMA regional offices or on the RMA agent web page.
This announcement was made possible by the 2014
Farm Bill. The 2014 Farm Bill builds on historic economic gains in rural
America over the past five years, while achieving meaningful reform and
billions of dollars in savings for taxpayers. Since enactment, USDA has made
significant progress to implement each provision of this critical legislation,
including providing disaster relief to farmers and ranchers; strengthening risk
management tools; expanding access to rural credit; funding critical research;
establishing innovative public-private conservation partnerships; developing
new markets for rural-made products; and investing in infrastructure, housing
and community facilities to help improve quality of life in rural America. For
more information, click here.
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