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Expanded Crop Insurance Options for Farmers Transitioning to Certified Organic Agriculture

March 14, 2016
Agriculture Blog Post

The USDA recently announced expanded crop insurance options to allow producers to purchase insurance coverage that better reflects their product's actual value. The expanded coverage is part of the USDA's continued commitment to provide farmers with resources and tools to meet the growing demand for certified organic products. According to Agriculture Secretary Tom Vilsack, "Consumer demand for organic products continues to increase and the industry has experienced remarkable growth, representing more than $39 billion in U.S. retail sales. This growth creates opportunities for farmers and businesses across the country. Expanding the safety net for farmers wanting to enter the organic market ensures they have the tools and resources they need to meet this growing demand while protecting their operation."

The change in coverage allows producers to insure transitional crops (moving from conventional to certified organic) to their contract price. Previously, producers of transitional crops were only able to insure them at the same price as a conventional producer. Producers transitioning to certified organic production can now use the Contract Price Addendum to cover their crops at a higher price than traditional crops. 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 or online at rma.usda.gov.

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