One of the main tools people use to deal with uncertainty and manage risk is insurance. Farmers likely have several different kinds of insurance with different companies: health, life, vehicle, business, or property insurance.
Crop insurance protects specifically against losses of crops or related revenue. The federal crop insurance program is a partnership between the federal government and private insurance companies, where policies are developed by the USDA’s Risk Management Agency (RMA) and sold through authorized private insurance agents, or approved insurance providers (AIPs). The federal government subsidizes the insurance premium, allowing the policies to be more affordable for producers. Losses must be due to an eligible cause, including adverse weather, fire, insects, plant diseases, wildlife, or market price declines.
Specialty Crop Insurance Policies Available in New England
Specialty crops, according to RMA, include fruits, vegetables, tree nuts, dried fruits, and horticulture nursery crops. RMA offers crop insurance for specialty crops under individual crop policies, as well as revenue-based programs that cover all farm commodities under the same policy.
Crop policies
While RMA has individual crop policies for many different crops, only a few are available in the New England states, and only in select counties in those states. Producers may also request a written agreement through an AIP to provide insurance coverage that is not otherwise available for a given crop in their county, but is available in other counties. The following vegetable crop policies are available in New England:
| Crop | Policy Available in: |
|---|---|
| Fresh Market Sweet Corn | All New England, except Dukes, Nantucket, and Suffolk counties in Massachusetts |
| Fresh Market Tomatoes | Connecticut, select counties |
| Green Peas | Maine, select counties |
| Potatoes | Connecticut, Maine, Massachusetts, & Rhode Island, select counties |
| Peppers | Connecticut & Massachusetts, select counties |
Revenue-based Policies
Revenue-based policies allow a producer to insure all commodities on the farm under one insurance policy. These policies were designed for diverse operations, including direct-market farms. They insure the value of commodities produced on the farm, as well as those purchased for resale (up to 50% of total revenue) during the insurance period. Producers can choose the level of coverage they want to purchase, from 50% to 90%. Payments are made if the actual revenue is below the insured value due to an unavoidable natural cause of loss that occurs during the insurance period. These revenue-based policies are available nationwide, in all counties:
Whole Farm Revenue Protection
- Insures farms with up to $17 million in revenue.
- Requires records including a Whole-Farm History report, a Farm Operation report, and 5 consecutive years of tax filings (e.g., schedule F). This may be reduced to 3 years for Beginning or Veteran Farmers.
- A diversification discount is applied to premiums when multiple commodities are grown, up to 7 crops.
Micro Farm Revenue Protection
- Insures farms with up to $350,000 in revenue.
- Requires records including a Whole-Farm History report, a Farm Operation report, and 3 consecutive years of tax filings (e.g., schedule F).
- One value for all commodities is established based on the average allowable revenue of the previous 3–5 years, which simplifies record keeping.
- Provides a built-in 3-crop discount.
- Allows post-production revenue (e.g., canning, freezing, pies, jams).
See the USDA Risk Management Agency Commodity Programs policy locator map to see a full list of policies available by commodity year, state, and county: https://public-rma.fpac.usda.gov/apps/mapviewer/commodity.
How to Purchase Crop Insurance
Approved Insurance Providers (AIPs) are private insurance companies that contract with USDA but are not employees of RMA. The RMA policies they sell must meet the same guidelines and carry the same premiums. Local AIPs, however, have on-the-ground experience working with New England producers and can help them decide if and how a crop or revenue insurance policy might fit their needs and are generally the first line of contact for producers interested in learning more about crop insurance. To locate a crop insurance agent, see the RMA Agent Locator, https://public-rma.fpac.usda.gov/apps/AgentLocator/#
For more information about RMA, crop insurance policies, and risk management strategies, see the RMA website, https://www.rma.usda.gov.