With expanded options, organic producers of specialty crops increase use of federal risk management products

Abstract

As of 2021, more than 17,000 U.S. organic farms sold $11.2 billion of certified organically produced products. Organic producers face different production and market risks than their conventional counterparts, but until 2001, Federal risk management tools were not targeted to differentiate that risk. Organic price elections for specialty crops coverage became widely available between 2014 and 2022, allowing producers to ensure their crop losses would be paid off at a contracted or published price. By 2022, nearly all organic crops were insurable under a Federal crop insurance program with organic-specific prices, and organic producers increasingly signed up. Organic specialty crop producers used buy-up options (a level of coverage exceeding the minimum) at similar rates as conventional specialty crop producers once the organic-specific prices were offered. Depending on the program, as many as 4 out of every 5 dollars are covered under buy-up options offered under Federal crop insurance.