It takes three years for farmers to transition a farm from conventional agriculture to certified organic production, a substantial hurdle. To make the transition a bit easier, USDA is expanding the Contract Price Addendum for crop insurance. The provision allows growers to insure crops at levels that reflect their actual value as they move into the organic market. Until now, the only option was to insure transitional crops as if they were conventionally produced, which is a lower price.
“Expanding the safety net for farmers wanting to enter the organic market ensures they have the tools and resources they need to meet this growing demand while protecting their operation,” said Agriculture Secretary Tom Vilsack.
Laura Batcha of the Organic Trade Association said the Contract Price Addendum “is a small but important tool” for farmers who want to switch to organic. “It is not easy to transition to organic and transitioning farmers should have a strong safety net,” said Batcha. Organic products are a $39 billion market.