Posts Tagged: insurance
A room full of farmers came out on a rainy Wednesday morning to enjoy breakfast together. Our guest speaker, Domenic Fino of Golden Pacific Crop Insurance Services, came all the way from Dinuba, California. He is a farmer, with a family legacy of farming and has been in the crop insurance business for 17 years.
Revenue - While farm acreage and the number of zeros after the dollar sign may be smaller for local farms, revenue earned is revenue that can be lost and can be insured. Fino explained a type of insurance called Whole Farm Revenue Protection (WFRP) that was designed specifically for small to medium producers with diversified operations and unique specialty crops. WFRP has been around for the last five years but has only been available in Placer and Nevada Counties in the last two years. WFRP is currently available in all counties in all 50 states.
Records - Fino brought a wealth of experience and information to local producers. He helped explain that WFRP works only if the producer is able to keep proper records and has been reporting revenue on their taxes. “Garbage in, garbage out” Fino said, speaking of how important diligence in record-keeping and setting up the policy makes processing easier when there are claims.
Reporting - Whereas most types of insurance require claims to be made right after a loss, WFRP is unique in that a producer may only complete a claim after filing taxes for the year.
Restrictions – At the farmer-to-farmer breakfast, producers also learned of a few crops that are excluded from WFRP, mushrooms and timber. However, there is a program that can provide assistance for those products called Non-Insured Assistance Program (NAP) which is accessed through the Farm Service Agency. Several mandarin growers learned that while you must have at least two crops for WFRP with the second making at least 17% of your revenue, if you only sell mandarins, there is another option.
Single Crop Insurance - Mandarin only crop insurance is already available in six Southern California counties. Any mandarin farmer may request that type of crop insurance in their county. Once enough farmers request a single crop insurance in a county, it can create a bank of information that will eventually make that type of insurance written specifically for that county.
For more information about WFRP, visit the USDA Risk Management Agency website. https://www.rma.usda.gov/Fact-Sheets/National-Fact-Sheets/Whole-Farm-Revenue-Protection-2018
Did you miss this event? If you are interested in learning more about crop or whole farm revenue protection insurance, UCCE can provide information. Call 530.889.7385 or e-mail us, email@example.com or firstname.lastname@example.org
Interested in attending a farmer-to-farmer breakfast? There is another one right around the corner. Wednesday, February 13, at Happy Apple Kitchen in Chicago Park. Look for a sign-up link coming soon.
Risk – What are you waiting for?
As the old saying goes, when it rains it pours. Nobody knows that better than we do right now, literally. For most farmers, rain is a good thing. However, for mandarin growers the amounts of rain and lengthy periods of high humidity are not good for mandarins in the middle of the season. This brings up the issue of risk on the farm. Drought, wildfire, food safety issues, crop loss, rain or frost damage are just a few of those risks.
Despite the periodic heavy rains, Placer and Nevada Counties are considered “abnormally dry” for this time of year according to the national drought monitor. After moderate and severe drought, this may seem like a fairly normal year. With shifting climates the “abnormal” could become normal over time. As we saw this fall, wildfire tore through thousands of homes and hundreds of thousands of acres. It seems the “most devastating wildfire in history” is becoming a headline each year.
While the risk of catastrophic wildfire seems to be increasing each year, rain and frost damage have historically plagued foothill farms. With travel throughout the world as easy as an overnight plane ride, international agriculture pests and diseases are also a real possibility here. I am not trying to scare you - I just want to highlight the need for farmers and ranchers to be aware of and plan for risks, and have the necessary resources to get through it.
Mother Nature is not the only risk; consider the romaine lettuce farmers on the Central Coast who had no market this fall when E. coli was found in that product. Even if one farmer did everything possible to maintain food safety, their crop may have been a total loss. Wouldn't you be glad to have crop insurance or revenue protection in place if you were in their shoes?
You will have the opportunity to hear from a fellow farmer and insurance agent, Domenic Fino of Golden Pacific Crop Insurance at the Farmer-to-Farmer Breakfast on January 9th at the Auburn UC Cooperative Extension office, from 8 to 11 AM. Sign-up today at http://ucanr.edu/survey/survey.cfm?surveynumber=26336 It's time to be informed and prepared to protect your farm.
Resources available on our website:
Drought Planning - https://ucanr.edu/sites/placernevadasmallfarms/Drought/Drought_Planning/
Financial Resources and Insurance programs https://ucanr.edu/sites/placernevadasmallfarms/Resources/Financial-Resources/