Dec 15, 2014

Specialty crops gain new insurance protections

USDA has announced that greater protection is now available from the Noninsured Crop Disaster Assistance Program for crops that traditionally have been ineligible for federal crop insurance. The new options, created by the 2014 Farm Bill, provide greater coverage for losses when natural disasters affect specialty crops such as vegetables, fruits, mushrooms, floriculture, ornamental nursery, aquaculture, turf grass, ginseng, honey, syrup and energy crops.

“These new protections will help ensure that farm families growing crops for food, fiber or livestock consumption will be better able to withstand losses due to natural disasters,” said Agriculture Secretary Tom Vilsack. “For years, commodity crop farmers have had the ability to purchase insurance to keep their crops protected, and it only makes sense that fruit and vegetable and other specialty crop growers should be able to purchase similar levels of protection. Ensuring these farmers can adequately protect themselves from factors beyond their control is also critical for consumers who enjoy these products and for communities whose economies depend on them.”

Previously, the program offered coverage at 55 percent of the average market price for crop losses that exceed 50 percent of expected production. Producers can now choose higher levels of coverage, up to 65 percent of their expected production at 100 percent of the average market price, according to USDA.

The expanded protection will be especially helpful to beginning and traditionally underserved producers, as well as farmers with limited resources, who will receive fee waivers and premium reductions for expanded coverage.

To help producers learn more about the Noninsured Crop Disaster Assistance Program and how it can help them, USDA, in partnership with Michigan State University and the University of Illinois, created an online resource. The tool allows producers to determine whether their crops are eligible for coverage. It also gives them an opportunity to explore a variety of options and levels to determine the best protection level for their operation.

If the application deadline for an eligible crop has already passed, producers will have until Jan. 14 to choose expanded coverage through the Noninsured Crop Disaster Assistance Program. To learn more, visit your local FSA office. FSA, which administers the program, also wants to hear from producers and other interested stakeholders who may have suggestions or recommendations. Written comments will be accepted until Feb. 13.