The US Department of Agriculture launches a new insurance option specifically for smallholder agricultural producers who sell locally. New Micro farm The policy simplifies record keeping and covers post-production costs like washing and value-added products.
USDA Risk management agency created this new policy based on research led by the 2018 Farm Bill. The policy will be available from crop year 2022.
The Micro Farm the policy is available to producers who have a farm that earns an average qualifying income of $ 100,000 or less, or for deferred policyholders, an average eligible income of $ 125,000 or less. RMA research has shown that 85% of producers who sell locally said they made less than $ 75,000 in gross sales.
The policy is delivered through farm-wide income protection, and has separate provisions that can provide greater access to the program, including:
No expense or individual product declaration is required, simplifying record keeping requirements for producers; income from post-production costs, such as washing and packaging products and value-added products, is considered eligible income.
“We are delighted to offer this new coverage to producers who strive to provide their communities with fresh and healthy food,” said Richard Flournoy, acting administrator of RMA. “USDA focuses on supporting local and regional food systems, and this new crop insurance policy is designed with this important sector of agriculture in mind. “
The Federal Crop Insurance Company approved on Micro farm political end of September. More details on the policy will be available this fall.
Crop insurance is sold and provided only through private crop insurance agents. A list of crop insurance agents is available to everyone USDA Service Centers and online on the RMA Agent Locator. To learn more about crop insurance, go to rma.usda.gov.