USA - Farms ‘buying up’ to raise crop insurance levels

13.01.2015 276 views

ALBION — Losing half of a season’s worth of squash, strawberries or onions is surely a disaster, but the loss of 48 percent of a crop still hurts.

The USDA’s insurance programs haven’t always seen it that way, with specialty crop growers receiving federal insurance only if weather-related losses topped 50 percent of expected production.

Some local farms are trying to bridge the gap through a newly expanded Noninsured Crop Disaster Assistance Program.

Joe Heberle of Kendall signed up Monday for NAP coverage for up to 65 percent of expected production — the maximum coverage allowed under the new federal guidelines.

Heberle Farms, situated in the moderating weather zone along Lake Ontario in Kendall and Hamlin, has experienced times of reduced yields but rarely hit the guidelines for its catastrophic coverage.

“With squash, we’ve never gotten an insurance payment,” Heberle said. “It’s really hard to lose 50 percent of a squash crop.”

For $6,500, Heberle covered his main crop of squash and added coverage smaller crops of apricots, blueberries, cherries, pears, plumes, prunes and raspberries that he couldn’t have under his old plan.

“Buying up” cost more, but Heberle preferred having a lower bar for triggering repayment.

“Having more insurance gives us more of an opportunity to get over a loss,” Heberle said. “It’s tough to get through a medium-loss year with fuel and labor. Now we could get payments to cover those costs.”

Heberle’s situation is a common one to Orleans County Farm Service Agency Director Larry Meyer, whose office is booked up as farms seek additional information or coverage ahead of Wednesday’s 2015 NAP deadline for stone fruits, garlic, honey and other early-spring produce.

“There’s been quite a lot of interest,” Meyer said.”With anything new, and the short sign-up window, there’s a rush to get it implemented.”

Meyer said the new guidelines, introduced this year after being included in the 2014 Farm Bill, can provide coverage levels that close the gap for crops running on a tight profit margin.

“With the old program just covering catastrophic losses, people could lose a lot of money even if they had the policy,” Meyer said. “With our weather, it gets dry, it gets wet, but people can still get a part of their crop out. This gives a better chance for coverage.”

Produce covered varies by county, with corn and apples the only locally-grown crop not offered in Orleans County. Sign-ups for vegetables like onions, radishes, lettuces and herbs will run through Feb. 1, with applications for all other available field crops due by March 15.

The expanded program’s roll-out is less active in Wyoming County, where the main produced covered is hay, alfalfa and mixed forage.

Wyoming County FSA Executive Director Kate Hemstreet expects that could change in 2016, when the program covers crop quality in addition to quantity.

The revised guidelines would be beneficial for forage, which can produce similar yields but fewer nutrients due to poor growing weather conditions.

“At this time, there’s not a ton of participation,” Hemstreet said. “Next year, they’re adding quality ... that’s a big thing when it comes to hay, but it’s not available yet.”

Source - http://www.thedailynewsonline.com

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