Fruit Insurance
USDA Announces Changes to Fruit and Vegetable Planting Rules
If you are a fruit and/or vegetable producer, you have gained new respect from me. Not only because you are raising wonderful and healthful foods for us all to consume, but because you have to be a genius when it comes to the business side. Here's what I mean. The USDA's Farm Service Agency has announced fruit, vegetable and wild rice provisions that affect producers who intend to participate in certain programs authorized by the Agricultural Act of 2014. Producers who intend to participate in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs are subject to an acre-for-acre payment reduction when fruits and nuts, vegetables or wild rice are planted on the payment acres of a farm. I called Ron Abbott, Farm Programs Chief and asked him to explain what all this meant in 25 words or less."It is not insurance in the classic sense in that there is no premium and no administrative fees. Nothing like that. These are both revenue-based programs so if the revenue on the farm drops below the expected level, then the producer earns a payment not to exceed 10% of that expected payment. Hey that is a good question, how to explain this in 25 words or less. I haven't seen the press release in front of me long enough to do that yet." Well at least he's honest, producers, good luck.
