Subcommittee endorses crop insurance fairness

Currently, organic farmers are charged a 5% premium over the cost a conventional farmer pays, says Organic Trade Association (OTA). And, when organic farmers must collect on their insurance policies, they are compensated at the price of the conventional crop, not the higher organic price.

"We greatly appreciate Rep. Bob Etheridge's leadership and the Subcommittee's commitment to help organic farmers," says OTA Executive Director Caren Wilcox. "Their steps will go a long way toward eliminating the penalties experienced by organic producers who depend on crop insurance. The inequities of the crop insurance system are a key impediment to more farmers converting their land to organic production."

The House Agriculture Committee's Subcommittee on General Farm Commodities and Risk Management recently marked up sections of the 2007 Farm Bill under their jurisdiction. In the legislative proposal that will now be considered by the full Agriculture Committee in the coming weeks, subcommittee members call for eliminating or reducing the organic premium and providing compensation for crop loss at the actual price of the organic crop. In addition, the Federal Crop Insurance Corporation (FCIC) would be required to submit an annual report to Congress detailing progress made in developing and improving federal crop insurance for organic crops.