May 1, 2013

Crop insurance correction helps New York growers

USDA’s Risk Management Agency (RMA) has clarified guidance that will now allow for the re-review of yield decisions that should lead to the reversal of determinations for dozens of New York farmers who purchased crop insurance policies, according to New York Farm Bureau (NYFB).

RMA was failing to take into account last year’s massive crop loss, when a spring frost cut apple production in the state by more than half. The result triggered an RMA formula that would have provided New York growers with significantly less crop insurance coverage, ranging from 15 percent to 35 percent less from the previous year. This would have put growers at significant risk of substantial financial loss in 2013 if there is another major weather event, according to NYFB.

RMA allows individual farmers to purchase crop insurance based on yields from previous years. To protect the integrity of the program, RMA monitors production trends that may indicate problems stemming from farm practices or the age of fruit trees. Typically, weather-related occurrences that affect production are removed from that equation, according to NYFB.

NYFB worked closely with crop insurance provider Crop Growers LLP, affiliated with Farm Credit East, to assess the situation and alert U.S. Sen. Kirsten Gillibrand, D-N.Y., of the problem. The resulting actions helped keep the needed risk management plans intact for the 2013 crop year.