Crop Insurance for the Organic Farmer

The federal crop insurance program was designed to help farmers recover some portion of expected income in the advent of a crop loss or failure. As wholesale-scale organic vegetable farmer Atina Diffley notes (to your right), crop insurance helps even out annual income and can reduce the stress of worrying about possible losses.

AGR-Lite Insurance
In the past few years farmers in WI, MN and several other states (see list below) have gained access to a new type of insurance coverage that can be very beneficial for their organic systems. Adjusted Gross Revenue- Lite (AGR-Lite) insurance takes into account a five-year history of farm production and sales to determine potential loss values. This "whole farm" insurance system allows organic producers to include the value of any organic premium gained for their products. AGR-Lite insurance was developed in Pennsylvania several years ago, and is slowly spreading into other states.

The Center for Agricultural and Rural Development at Iowa State University has released a paper on organic crop insurance, including finding from analyses conducted on organic crop prices, yields, and revenues.  The full report is available here.

Currently RMA provides crop insurance coverage for:
1. Certified organic acreage,
2. Transitional acreage being converted to organic in accordance with an organic plan and,
3. Buffer zone acreage.

Contamination on certified, transitional or buffer land due to drift or application of prohibited substances is not considered an insured loss. Any loss due to failure to comply with the organic standards is considered an uninsured cause of loss.

• Sign up is generally by March 15th each year. A few crops have other sign up dates (ie: cranberries, apples, forage, winter and spring wheat, etc., so please check with your Agent for the exact deadline for your crop.)


• Insurance is sold though private insurance agents. Contact your area Farm Service Agency for a listing of local agents that carry crop insurance. You may also find a listing of agents on the USDA Risk Management Agency website at www3.rma.usda.gov/apps/agents/.


• Insurable damage caused by insects, disease or weeds is covered if recognized organic farming practices fail to provide effective control.


• Other perils such as excess moisture, drought, freeze, storm damage and significant hail damage are also covered.


• AGR-Lite Premiums are calculated based on your previous five years of IRS Schedule F forms. You will need to have these with you in order to sign up for a policy.

Resources for Crop Insurance for organic systems:

Organic Farming Practices: Insurance Fact Sheet (USDA- Risk Management Agency)
www.rma.usda.gov/pubs/2006/organics.pdf

Adjusted Gross Revenue-Lite: Fact Sheet (USDA- Risk Management Agency)
www.rma.usda.gov/pubs/rme/agr-lite.pdf

The Price of a Good Night's Sleep: Why AGR-Lite insurance is in the Gardens of Eagan farm budget (Organic Broadcaster Article)
www.mosesorganic.org/broadcaster/other16.1agrlite.html

The AGR Program: Crop Insurance for Diversified Agriculture
A fact sheet by the University of Vermont Extension
www.uvm.edu/vtvegandberry/factsheets/agr.html

Crop Insurance for Organic Farmers in Pennsylvania (Newsletter from PA Dept of Ag)
www.agriculture.state.pa.us/agriculture/lib/agriculture/fooddistributionfiles/ELI-103-07_PA_Organic_DM_F.pdf

What is AGR-Lite? Answers to common questions from the Pennsylvania Department of Ag.

List of Independent Insurance Agents selling Federal Crop Insurance policies
www3.rma.usda.gov/apps/agents/