USDA RMA Sets Listening Sessions too Review the Apple Crop Insurance Policy

 

 

USDA RMA Sets Listening Sessions to Review the Apple Crop Insurance Policy

February 26, 2018

Since July 2017, many apple growers attended or participated in meetings held by USDA’s Risk Management Agency (RMA) where the Agency discussed concerns with the higher than acceptable loss ratios experienced by the apple policy in certain parts of the country. The law under which the crop insurance program operates requires that the ratio of loss payouts to premium and federal subsidy income must not exceed a 1:1 ratio. Loss payouts (indemnity payments) must not exceed the total sum of premiums paid by growers and the federal premium subsidy. The federal subsidy for crop insurance premiums has averaged roughly 65% of the total premium cost in recent years.

As part of the in-depth analysis of the current policy, the RMA has developed a framework under which they plan to gather information and develop proposals to deal with the identified problems.

The first stage of the process calls for the RMA to hire a contractor with substantial expertise in crop insurance to conduct a study of the apple contract and to seek input from growers and insurance representatives. The contractor selected by RMA is Agralytica of Alexandria, Virginia.

Today, the RMA announced a series of listening sessions to be conducted by Agralytica inVirginiaNew YorkMichigan, and Washington State.  (Click on these links for additionalinformation.)

The announcement of the listening sessions also included an opportunity for an individual meeting. Instructions on arranging an individual meeting is below.

If anyone would like an individual meeting, Agralytica staff will be available at the above locations. To arrange a time, contact Andre Williamson by cell at 240-432-0308 or by email at awilliamson@agralytica.com. Alternatively, anyone who cannot attend can submit e-mailed comments. Please us “Apple policy” as your subject line.

Feel free to contact me with any additional questions you may have.

 

 

      USApple.org Questions? Contact us at 703.442.8850

Two Dynamic Topics are on the Table this Summer

RMA to Discuss the Future of Apple Crop Insurance in NYS

 I am certain each of you know the threat Mother Nature places upon your operations each year. To counter this risk, the RMA has developed an Apple Crop Insurance Program. Like any federal supported program there are those who question the fairness to the US taxpayers. Over the last five years the northeast sector, including Michigan, has suffered devastating losses due to climate related events. As a result, many feel that the cost to insure fresh apples in this sector is too expensive for the US taxpayer to continue at the same rate of risk. On the table will be talks to raise the grower dollar contribution to this program.

On August 16, in Rochester, New York, I will be attending and participating in an open discussion with the leaders of RMA as to the future of our Apple Crop Insurance Program. I will be very strong in my opinion that this program is absolutely essential to maintaining a healthy NY apple industry. Crop insurance is not cheap.  All insurance programs offer a risk/reward element. I have been very outspoken that without crop insurance I feel many very good apple operations would either be out of business today or be carrying a huge debt to cover these climate related events. As an industry, we are willing to pay for our insurance. The levels, however, can be raised to a level that prohibits participation.

H-2C

 Currently being circulated within the House of Representatives is a 46-page document that outlines the House vision for solving the agriculture guest worker issues. I have read this several times and applaud the House for putting so much time and effort into this study. It is in the discussion stages and there is a great deal of back and forth as industry and staff debate the content. In my opinion, this is the most complete effort to address this issue since Ag Jobs.

If approved and signed by the White House, this program would go into effect 18 months after passage. It would replace the H-2A programs. It is a much more enlightened document that offers a path forward for today’s agriculture to staff their needs while maintaining border security. Final wording is not on the table at this time, of course. I do see an honest effort to apply the needs we have been advocating for all of these years. The House is reaching out to the industry for comments and we will be there to offer constructive comments.

In short, if we can continue to draft this H-2C program, I feel it offers the most enlightened efforts to fix agriculture labor needs while maintaining border security. I am confident that we, for the first time, have a strong piece of legislation coming from the House that will offer security to our labor issues that have been in flux since 1987. I consider monitoring this document issue number one for the NYS Horticulture Society. We will keep everyone in the loop as this develops.