Crop Insurance: What’s New for Organic Farmers in 2014?
Insurance for organic crops has been on the market since 2000, but growers wanting to insure their organic production were confronted to two major drawbacks:
– Premiums for organic crops were surcharged 5% compared to conventional crop
– The organic crop was insured only for its value at a conventional price
So what’s new with organic crop insurance under the 2014 Farm Bill?
-The premium surcharge of 5% is no longer applied to organic crops
-Premiums are based on historic yields for organic production, just as they are for conventional production.
-There is still no listed price for organic price to be insured under. But if thier crop is contracted, growers have now the possibility to insure their organic crop, including wheat, at the contracted price, under certain conditions. To learn more about the Contract Price Option, consult the Risk Management Agency Fact Sheet.
You can find general information about organic crop insurance here.