farmers

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.

On a recent trip to California, I had the pleasure meeting several farm families who are impacted by the state's worsening drought. Both stops gave me a first-hand view of the challenges these farmers face. We discussed how USDA can further help them with available resources. While the discussion centered on concerns over water supply, I was heartened to see that the Natural Resources Conservation Service’s (NRCS) recommended conservation practices have helped them better prepare for the state’s historic water shortage.

During the first stop, I visited with a distinguished dairyman and conservationist in Marin County, Bob Giacomini, and his four daughters, who operate the Point Reyes Farmstead Cheese Company. Driving over the hill towards Bob’s milking complex, I could see the pastures had little, if any, grass. In talking to Bob, he said that typically the grass would be at least two feet tall by now. He has real concerns about having enough forage for his cows. I also spoke with Paul Bianchi, who had joined us.  Paul owns a dairy operation in neighboring Sonoma County and, like Bob, is very concerned about his ability to feed his cows. Both discussed the real possibility that they may have to sell some of their herd.

Innovation is at the heart of the American agriculture success story. As a matter of course, today’s farmers and ranchers must constantly prepare and adapt to get ahead of tomorrow’s challenges.

At USDA, we have a long history of fostering research and innovation that help agricultural production thrive. I am pleased that the 2014 Farm Bill, signed into law today by President Obama, includes new support for agricultural research and, through a new research foundation, recommits to innovation for years to come.

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:

Weather dominates the conversation at local coffee shops and community gathering locations across the Northern Plains.  Depending on the time of the year, I’ve heard things like this:

“We sure could use rain - really dry out there. Cattle are going to have to come off the pastures soon.”

Or…

“Hoping the rain will break here for a few days so I can get the hay cut without it getting rained on this time.”

Since 1840, the U.S. government has collected important census data on agriculture. The purpose of the Census of Agriculture is to account for all U.S. farms and to summarize the characteristics of those farms and their operators at the national, state, and county levels.

Today, the Census is the only comprehensive source of statistics on American agriculture that provides information by county. So, why do we call the numbers we produce estimates? Aren’t the numbers known exactly? These are the questions I am often asked when discussing the agricultural census.  The fact is that we do not know the numbers exactly so we produce the best estimates we can, given the data we collect.

America’s farmers, ranchers and forest landowners face a complex and ever-changing threat in the form of a changing and shifting climate. The past three years alone have brought some of the most severe and devastating floods, droughts and fires our nation has experienced in recent history.

While no individual event can be linked to climate change, extreme weather conditions are increasingly impacting our farmers, ranchers and forest owners, to the detriment of their bottom lines, our food supply, and the future security of our farm economy.

We need a strategy that strengthens agriculture’s response to the impacts of a changing and shifting climate. Our farmers and ranchers need new and better tools to respond and prepare for the challenges of drought, heat stress, excessive moisture, longer growing seasons and changes in pest pressure.

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.

For years, researcher and filmmaker Buz Kloot suspected something remarkable was happening under our feet.

His suspicion was based on interviews he conducted with farmers from various parts of the country – all of whom reported significant production and environmental benefits by simply improving the health of their soil.

“These farmers reported more consistent yields, lower input costs and higher net income,” said Kloot, a University of South Carolina research associate professor. “They weren’t sneaking out at night to fertilize and irrigate. I had to believe what I saw. And with each visit, these ‘anomalies’ amassed.”

In his State of the Union address earlier this week, President Obama outlined his plan to move our economy forward by expanding opportunity for all Americans. Recognizing the role that agriculture continues to play in our nation’s economic recovery, the President said, “Today in America, […] a farmer prepared for the spring after the strongest five-year stretch of farm exports in our history.”

America’s farmers, ranchers and foresters, and those working in supporting industries, are to be commended for these accomplishments. They are expanding and growing markets around the world, spurring innovation, and creating jobs and opportunity on and off the farm, even in the face of uncertainty. The future of rural America depends on their continued leadership, and we must make sure they have the tools they need to continue to grow.