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.