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Small-scale producers get improved insurance coverage

iStockphoto/Baloncici Fresh and organic vegetables at farmers market
USDA's new Micro Farm policy simplifies recordkeeping and covers post-production costs.

Agricultural producers with small-scale farms who sell locally can now get simplified insurance coverage through a new policy designed for their needs. The U.S. Department of Agriculture developed the new Micro Farm policy, which simplifies recordkeeping and covers post-production costs like washing and value-added products. 

“USDA is focused on supporting local and regional food systems, and Micro Farm is one more example of how we’re helping agricultural producers with farms of all shapes and sizes to manage their unique operations and risk,” said Marcia Bunger, Administrator for USDA’s Risk Management Agency. “The Risk Management Agency values collaboration and feedback from our customers, and Micro Farm is one way we're responding to producers’ needs.” 

Micro Farm is offered through Whole-Farm Revenue Protection and is geared to local producers. Details include: 

Eligibility

Micro Farm is available to producers who have a farm operation that earns an average allowable revenue of $100,000 or less, or for carryover insureds, an average allowable revenue of $125,000 or less.

The increase in allowable revenue for a carry-over insured will allow for some farm growth in subsequent years before they become ineligible for the program. RMA’s research showed that 85% of producers who sell locally reported they made less than $75,000 in gross sales. 

Micro Farm is available for the 2022 crop year. Sales closing dates are Jan. 31, 2022, Feb. 28, 2022, or March 15, 2022, depending on the producer’s county.   

Producers with crops insured under another crop insurance policy or a vertically integrated operation will not be eligible. 

Specialty and organic crops 

The Micro Farm policy builds on other RMA efforts to better serve specialty and organic crop growers. This includes WFRP, which provides coverage for producers with larger operations that may not be eligible for Micro Farm. RMA recently made improvements to WFRP as part of a broader set of new policies and expanded policies to assist specialty crop and organic producers.     

A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. If you have difficulty finding an agent, contact your RMA Regional Office. Learn more about crop insurance and the modern farm safety net at rma.usda.gov Read the full report.

This new policy derived from research directed by the 2018 Farm Bill, and it includes feedback from producers who grow for their local communities. For more information, see the full report.  

Source: USDAwhich is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset. 

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