crop insurance

Crop insurance has long been an important part of the farm safety net, providing a reliable and cost-effective risk management tool that ensures farmers can continue to farm even after tough years. Just as important is the planning and good stewardship of the land that farmers perform to ensure a sustainable food supply.

USDA has a long standing mission of helping people help the land. USDA provides assistance to producers with farm-level natural resource assessments and conservation planning as well as financial and technical assistance through a variety of voluntary conservation programs. USDA also provides the technical services necessary to implement conservation compliance provisions.

To be eligible to receive many USDA benefits, including loans, disaster assistance, federal crop insurance premium subsidies and conservation assistance, producers must comply with requirements for highly erodible lands and wetlands. The purpose of the conservation compliance provisions is to reduce soil loss on erosion-prone lands and protect wetlands. Use these steps to ensure you’re compliant.

Farmers seeking federal crop insurance premium subsidies for the 2016 reinsurance year must comply by June 1 by filing form AD-1026.

We know that there are climate change risks and vulnerabilities facing agriculture that have significant implications not just for farmers, ranchers, and forest landowners, but for all Americans and the world. That’s why we are working on measures to reduce greenhouse gas emissions and prepare for climate change impacts such as flooding, sea level rise, severe weather and temperature extremes.

Today’s release of the USDA Sustainability Plans and Climate Change Adaptation Plans coincide with the fifth anniversary of President Obama’s 2009 Executive Order on Environmental, Energy and Economic Performance, which set aggressive energy, climate and environmental targets for agencies, and detail how USDA’s actions have already contributed to reducing the Federal Government’s greenhouse gas emissions by more than 17 percent since 2008 – the equivalent of permanently taking 1.8 million cars off the road.

Consumer demand for organic products continues to grow across the country, representing a $35 billion dollar industry in 2013.  To meet this demand, USDA has initiated a number of new and expanded efforts to connect organic farmers and businesses with the resources they need to ensure the continued growth of the organic sector domestically and abroad.

Some programs have the specific purpose of assisting organic farmers, ranchers, and handlers. Other programs are open to the general public, including organic operations. USDA has a one-stop-shop for information on all of our programs and opportunities for the organic community.  From research and education, to market information and technical assistance, we have something for you.

When Lindsey and Ben Shute contacted their local Farm Service Agency (FSA) office looking for loan assistance to build a new cold storage facility for their farm, they had no idea what was in store for them.

For several years, FSA’s Farm Storage Facility Loan (FSFL) program had been available for cold storage facilities like the one Lindsey and Ben hoped to build. But Mike Schmidt, Deputy Administrator for Farm Programs in the Farm Service Agency, had been hearing reports that it was not being used widely by diversified fruit and vegetable producers.  Unclear on why, he reached out to a number of members of the community-supported agriculture (CSA) field and other diverse fruit and vegetable producers to see what the hurdles were.  That’s when Mike got connected to Lindsey and Ben.

As consumer demand for fresh fruit and vegetables increases, so do the production risks for the nation’s farmers as they grow these crops.  To meet this challenge, the Risk Management Agency (RMA) pays close attention to the changing agriculture sector to ensure that crop insurance is made available where feasible.

A tremendous amount of work goes into offering a new insurance product, making sure that the product provides the coverage needed by growers at a reasonable premium without distorting the market or affecting a grower’s management decisions for the crop. New insurance products must have written policy, underwriting and loss procedures, as well as an actuarially-sound premium rate. The ability to innovate with new and expanded insurance offerings to reflect modern and changing farming practices is central to how the Federal Crop Insurance Program works.

Today, Secretary Vilsack joined the President in Michigan to sign the 2014 Farm Bill, an accomplishment that would not have been possible without your engagement. Last year we began the #MyFarmBill campaign in an effort to share with all Americans the need for a comprehensive Food, Farm and Jobs Bill to keep up momentum in American agriculture. Today that bill was signed and we are able to move forward to do work that grows the rural economy and creates jobs.

The new Farm Bill will allow the proud men and women who feed millions around the world to invest confidently in the future. While no legislation is perfect, this bill is a strong investment in American agriculture and supports the continued global leadership of our farmers and ranchers.  Take a look at how your voices were included in the 2014 Farm Bill:

Federal crop insurance provides the risk management tools necessary for American farmers to stay in business after a difficult crop year. They can be the difference between a farmer going under because of a lean year or having a safety net that allows them to keep farming and rebuild.  These tools help farmers who rely on good farming practices for smart land use and preserve economic stability for generations.  And the Risk Management Agency (RMA) has worked hard to extend risk management tools for organic producers.

Organic producers were first able to obtain crop insurance under the Agricultural Risk Protection Act of 2000. However, due to the lack of data, organic farmers were initially charged an additional 5 percent surcharge and were only able to insure the “conventional price” for their crop - not the organic price.  Many organic producers felt the surcharge was not justified and that crop insurance prices needed to better reflect what they received in the marketplace.

American producers know that crop insurance is a proven tool for managing the risks of farming.  But many folks may not be aware that it also promotes sound practices that encourage environmental sustainability.

One of the primary reasons the Federal crop insurance program is good for conservation is that it requires producers to exercise good farming practices in order to be eligible for coverage.  Good farming practices vary from crop to crop and from region to region, but follow the principle that the farming practices carried out are considered prudent and responsible by local extension agents and certified crop consultants. And this means planning for the long-term future, not just the current crop year.

While rural Americans have already waited too long for passage of a new Food, Farm and Jobs bill, this week brought a promising new development. Conferees from the Senate and House met to begin work on the creation of a bipartisan, long-term Farm Bill. Their work could not be more timely – and they are in the spotlight now more than ever before.

The Farm Bill is crucial to America’s farmers, ranchers and producers. It provides a necessary safety net for producers centered around a strong crop insurance program and a dependable set of disaster assistance programs. The last two years of drought and other weather-related disasters underscores how important that safety net is to keeping producers in business.

The Farm Bill’s importance extends beyond the farm safety net.