Oct 07, 2021 2:28 PM

USDA introduces new insurance policy for farmers who sell locally

Posted Oct 07, 2021 2:28 PM

The Department of Agriculture is rolling out a new insurance option specifically for agricultural producers with small farms who sell locally. The new Micro Farm policy, announced Wednesday, simplifies record keeping and covers post-production costs like washing and value-added products.

USDA’s Risk Management Agency created the new policy based on research directed by the 2018 Farm Bill, and it includes feedback from producers who grow for their local communities.

The policy will be available beginning with the 2022 crop year. The new policy is offered through Whole-Farm Revenue Protection, and it has distinct provisions that can provide more access to the program.

The Micro Farm policy is available to producers who have a farm operation that earns an average allowable revenue of $100,000 or less, or for carryover products, an average allowable revenue of $125,000 or less. RMA's research showed that 85 percent of producers who sell locally made less than $75,000 in gross sales.