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Growers say current crop insurance fails specialty crops; urge pilots and program fixes
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Summary
Nursery and diversified specialty crop producers told lawmakers Whole Farm and other federal insurance tools often fail them because high diversity and thresholds (50% loss) prevent payouts; witnesses asked for targeted pilots, advisory input to RMA, and alternative relief mechanisms.
WASHINGTON — Specialty crop growers and state leaders told the House Agriculture Committee the current federal risk‑management tools do not fit the production realities of diversified specialty crop operations and perennial plant producers.
Michael Fraunce, co‑owner of Fraunce Wholesale Nursery, said many nursery crops are too diverse for existing Title I programs and described how catastrophic programs with a 50% loss trigger "rarely work well for us because of our extreme crop diversity." He testified that a frost that destroys a portion of the nursery may still leave the overall farm below the 50% threshold and therefore not trigger a payout.
Why it matters: Many specialty crop businesses host dozens or hundreds of distinct varieties with different life spans and market windows, making acreage‑based insurance and simple revenue triggers difficult to apply. Witnesses said that shortfalls in insurance access push growers to rely on ad‑hoc disaster assistance that has low payment caps and strict adjusted gross income (AGI) limits.
Supporting details: Witnesses highlighted the limits of the Noninsured Crop Disaster Assistance Program (NAP) and ad‑hoc emergency payments: payment caps and AGI limits make those programs insufficient for mid‑sized enterprises; one witness said MAP (Marketing Assistance?) ad‑hoc payments have helped but are not a long‑term solution. The chairman noted recent reconciliation changes that raise Whole Farm Revenue coverage to 90% and change AGI waiver thresholds but members and witnesses urged further piloting and RMA advisory input.
Discussion versus action: Committee members asked for written proposals to pilot specialty‑crop insurance products, urged RMA to form an industry advisory process, and suggested exploring broader disaster relief mechanisms. No final rulemaking or statutory change was adopted during the hearing.
Ending: Growers asked for targeted pilots, data collection, and a role for industry in designing specialty crop insurance to improve timely payouts and long‑term program viability.
