Fact Sheet: Crop Insurance for Organic Farming Practices

The U.S. Department of Agriculture’s Risk Management Agency (RMA) recently published a Fact Sheet titled, “Crop Insurance for Organic Farming Practices.”

The RMA item stated that, “Organic farming has become one of the fastest growing segments of U.S. agriculture. [RMA] recognizes organic farming practices as good farming practices and continues to move forward in improving crop insurance coverage for organic producers and producers transitioning to organic production to make viable and effective risk management options available.  In general, regulations governing the insurability of organic and transitional practices are the same as for conventional practices.”

The Fact Sheet noted that, “RMA provides coverage for:

-  Certified organic acreage; and

-  Transitional acreage (acreage transitioning to certified organic acreage in accordance with an organic plan).

Insurance can only be provided for any crop grown using organic farming practices when a premium rate for an organic practice is specified in the actuarial documents or there is an approved written agreement.”

The RMA sheet also pointed out that, “RMA continues to expand premium organic price elections to extend the safety net provided by crop insurance and to provide fair and flexible solutions to organic producers. Premium organic price elections now exist for the majority of crops insured by RMA. RMA continues to evaluate all crops to establish organic price elections in future crop years.

“A list of crops that have a premium organic price elections can be found at www.rma.usda.gov/news/currentissues/ organics/organiccroplist.html.”

For additional information, the Fact Sheet indicated that, “You can find definitions related to organic practices in the most current Common Crop Insurance Policy, Basic Provisions, at www.rma.usda.gov/policies/2017policy.html. You can find crop insurance policies, crop provisions and handbooks on the RMA Organic Crops Page at www.rma.usda.gov/news/currentissues/organics/.”

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