10/14/2014

Risk Management Agency Announces Whole-Farm Revenue Protection

Farm Credit East is pleased by the Risk Management Agency’s (RMA) recent announcement to establish additional premium subsidies for diversified farms as part of the new Whole-Farm Revenue Protection policy. The new policy, required by the 2014 Farm Bill, will provide diversified farms more affordable risk management coverage options. 

“We urge that consideration of this new policy be made for the record-keeping practices of diversified farm business and specialty crop producers,” commented Jeremy Forrett, vice president for Crop Growers, LLP. “We support this beneficial product that provides premium discounts for highly diversified producers that, due to the nature of their business, have an inherent risk reduction.”

The new policy, expected to be released in mid-November, offers whole-farm insurance, enabling diversified farms to insure all crops and livestock on their farm under one policy, rather than insuring each commodity separately. Fruit and vegetable growers, growing two or more commodities, and other producers with diversified farms selling to wholesale markets, local and regional markets, farm identity preserved markets, or direct markets, will be able to purchase more flexible, affordable protection. Farms with only one commodity will continue to receive the standard subsidy rate. 

“The crop insurance program has become the backbone of many northeast farms’ risk management plans and we appreciate the continued commitment to the Targeted States Risk Management Education grant program for Northeast states. We recommend that additional funding be provided to educate producers on the new Whole Farm Revenue Program,” continued Forrett.

The Whole-Farm Revenue Protection Policy will be offered as a pilot program for the 2015 insurance year. For more information, contact your Crop Growers agent. To find a Crop Growers insurance agent, visit CropGrowers.com. 

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