US Government Invests in Organic Farming with Farm Bill

As one of the fastest growing segments in U.S. Agriculture, organic farming is a word on everyone’s lips. Between food co-ops, sustainable agriculture, and the new green awareness of society, the demand and benefits of organic farming are reaching new heights. 

Still, for some established farms, organic farming methods might prove to be a challenge and the increased costs attached to organic farming becomes a disadvantage. The 2008 USA Farm Bill provides specific opportunities for organic producers and those transitioning to organic farming with the “Organic Initiative.” Agricultural producers who are certified organic or transitioning to organic production, may qualify for technical and financial assistance through a new initiative administered by USDA’s Natural Resources Conservation Service (NRCS)

Up to 50 Million $$  for Organic Farms!

Approved applicants can receive up to $20,000 per year or $80,000 over six years in order to assist Farmers in making the transition to organics. According to a spokesperson for the NRCS, the federal service is now taking applications for its Organic Initiative and the deadline for the 2009 fiscal year is rapidly approaching. Applications are taken continuously, but check your particular state for the eligibility requirements and the dates for your area.

For Example: 

• New York Environmental Quality Incentives Program Organic Initiative 2009: the deadline has extended until June 12, 2009
• California Organic Initiative EQIP has a May 29 deadline and 3 million dollars
• Oregon EQIP has an extended signup as well until June 5^th, 2009

The EQIP Organic Initiative will highlight six “core” conservation practices. The list of eligible practices includes but is not limited to:

• Conservation Crop Rotation
• Cover Crop
• Forage Harvest Management
• Nutrient Management
• Pest Management
• Prescribed Grazing

So depending on your state, there is funding for certain things like establishing a windbreak or creating a forest buffer for wildlife quality or payments for soil testing. Don’t forget, if you create that windbreak of trees, you might want to consider Live Asset Insurance to protect your investment!

Organically Disadvantaged?

In addition, the 2008 Farm Bill offers some program opportunities for “Historically Underserved” individuals and groups. The payment rate for “Historically Underserved” is higher than the general rate in some states. These groups are: Socially Disadvantaged Groups, Limited Resource Farmers and Ranchers, Beginning Farmers and Ranchers and Indian Tribes, so make sure to check that out as well! 

We encourage organic producers, or those transitioning to organic production, to contact their local USDA Service Center to learn more about this opportunity before the deadlines. Organic Farming is clearly a benefit to so many of us. It helps the economy, it helps our environment and it helps keep people healthy and happy.

Asset Tracking on Plant Inventory

Many people ask us:

 ”How do you value the plant inventory?  On cost or selling price?”

We provide coverage on a wholesale nursery plant replacement cost valuation.

For example; if a plant were purchased for $10 dollars and the grower held it for 2 years and sold it for $100 dollars, Live Asset would not pay a $100 dollar claim, because the $100 dollar amount includes profit. We do not insure lost profit on plant inventory.

However, we do pay 100% of the insured amount for “specimen plant items” on an agreed amount basis, when listed on the policy.

Specimen plant items are “one of a kind plant material” that can not be replaced with a commercially grown like, kind and quality replacement. Specimen plant status is determined by HMI when the inventory list is submitted as part of our application process.

If the Live Asset policy designates your inventory as “specimen plant status” we will pay 100% of the value on a structured payment with 55% upfront to cover debris removal, new inventory and installation; the balance paid in equal installments over the next 3 years; as long as the grower replaces the item with a new “replacement liner or vine”.

If you are unsure on how to properly manage your live assets and protect your plant inventory, feel free to contact your Live Asset broker.

New Live Asset Crop Insurance Protection coming soon!

This is exciting news for farm managers and the crop brokers who insure them!

The only overall complaint we hear at Live Asset Insurance from prospective clients and their crop brokers is that our minimum premium is just too high for them to afford. There are thousands of mom and pop farms that have live asset exposures, but can’t afford the $5,000 entry fee. We heard you and we have been trying to find a way to get around this issue.

Bundle Your Assets, Protect your Crop Exposures

We hope to announce shortly that smaller live asset exposures can be written on a single “bundled” property policy for the owner, operator, manager or broker for a smaller sized or niche farms.  Our legal department is finalizing the 19 state offerings.

Qualifying farm managers must control the farm operations and be contractually responsible for the protection of the plant material. We will require management firms to enforce our inspection standard of care so quality random sampling can be done to keep our inspection costs low.

This will apply to all live asset crop and farm managers:

• Vineyard
• Nursery
• Greenhouse
• Orchards
• Tree Groves
• Golf Course
• Botanical Gardens
• other growing plant material exposures.

We expect to officially announce this in the next few weeks, so stay tuned