Organic group happy with crop insurance options |

Organic group happy with crop insurance options

The Organic Trade Association on Thursday praised the Agriculture Department for announcing it will allow producers transitioning to certified organic production to use the Contract Price Addendum to cover their crops at a higher price than traditional crops.

The Contract Price Addendum allows farmers transitioning to organic production to insure certain crops at their contract price rather than the published USDA Risk Management Agency (RMA) price election.

“The Organic Trade Association has long advocated for improved crop insurance and risk management tools for organic producers and welcomes the USDA move to provide more adequate crop insurance coverage for farmers transitioning to certified organic production,” said CEO and Executive Director Laura Batcha.

“It is not easy to transition to organic, and transitioning farmers should have a strong safety net,” Batcha said.

“Organic supply in the U.S. is falling short of the robust demand for organic products, and farmers need to have the proper tools and incentives to transition to organic production. This announcement is a small but important tool in what needs to be a full tool kit for transitioning to organic. We look forward to working with USDA to build out that tool kit.”

USDA said Vilack made the announcement at the White House during remarks to participants at a USDA Market Summit.

A list of commodities eligible for the Contract Price addendum is available online.

–The Hagstrom Report

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