Organic Farmer Aug/Sept 2019

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Continued from Page 23 • The approved revenue for the insurance year is $1 million dollars, 90 percent of that is $900,000. “Approved revenue” is the level of revenue that has been approved for revenue insurance by the farmer’s crop insurance agent. Keep in mind that the highest level of revenue insurance offered under WFRP is 85 percent, so the insurable revenue in this case is $900,000, but the trigger point would be 85 percent of that figure: $900,000 X .85= $765,000. Bottom Line These changes will make WFRP a better product over the longer-term given the often high degree of variability of a farmer’s income, whether organic or not. The total premium cost for this new adjusted WFRP policy would have been $103,923 dollars. With the federal subsidy the farmer pays $37,571 dollars, not an insignificant cost. However, it is important to note that many of the highly specialized organic crops grown and used in this example, such as emmer wheat and kamut, are very valuable and uninsurable in any other way. Also, it is critical to recognize that this unique policy provides some protection against revenue reductions, and not just losses attributed only to yield loss. Revenue is price X yield and both are at risk. Often there are yield risk policies for unusual specialty organic crops in some geographic locations, but rarely are these revenue policies. For example, I try to grow fresh market tomatoes in beautiful Butte, Montana but except for a WFRP policy, I would be unable to insure from price and yield risks. Coming Attractions: Provisions Specific to Hemp. WFRP will allow coverage for industrial hemp production for the 2020 crop year with the following restrictions: • Hemp must be produced in compliance with applicable plan (State, Tribal, or Federal). • Hemp must be grown under a marketing contract. • No replant payments will be offered at this time. • “Hot” hemp will not be considered an insurable loss at this time. Hot hemp occurs when THC concentrations spike above 0.3 percent due to crop stress and cross-pollination. Jeff Schahczenski, is an Agricultural and Natural Resource Economist, with the National Center for Appropriate Technology (NCAT). NCAT also implements ATTRA, the National Sustainable Agriculture Information Service through a cooperative agreement with the United States Department of Agriculture’s (USDA) Rural Business-Cooperative Service. ATTRA’s website, www. attra.ncat.org, has information about sustainable and organic production of crops and livestock, as well as an updated version of Biochar and Sustainable Agriculture. ATTRA runs two toll-free lines which growers can call to ask any question related to organic or sustainable agriculture (800-346-9140, and Spanish toll-free, 800-411-3222). Resources ATTRA. www.attra.ncat.org, toll free lines 800-346-9140 (Spanish: 800-411- 3222) Particularly helpful publications, videos, podcasts are available at ATTRA Crop Insurance Documentation and Record Keeping for Whole Farm Revenue Protection (WFRP) https://attra.ncat.org/attra-pub-summaries/?pub=612 National Sustainable Agriculture Coalition (NSAC) http://sustainableagriculture.net/ Vilicus Farms https://www.vilicusfarms.com/ “ These changes will make WFRP a better product over the longer-term given the often high degree of variability of a farmer’s income, whether organic or not. ” USDA Risk Management Agency (RMA) www.rma.usda.gov/ This site is an excellent resource for all RMA programs, specific policies, and general risk-management tools. The following are some important links within the website: • Basic description of policy types www.rma.usda.gov/policies/ • State profiles of policies offered and their use www.rma.usda.gov/pubs/state-profiles. html • Maps detailing policies that are offered in particular counties https://prodwebnlb.rma.usda.gov/apps/MapViewer/ index.html • Premium Cost Estimator for all polices https://ewebapp.rma.usda.gov/apps/ costestimator/ • Crop insurance agent locator https:// www3.rma.usda.gov/tools/agents/companies/ • Whole-Farm Revenue Protection Policy https://www.rma.usda.gov/policies/ wfrp.html • Requesting insurance not available in your county www.rma.usda.gov/pubs/rme/requestinginsurance.pdf Comments about this article? We want to hear from you. Feel free to email us at article@jcsmarketinginc.com 24 Organic Farmer August/September 2019
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Organic Farmer Aug/Sept 2019

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