This year has been one of the most challenging in the history of Massachusetts farming. We saw record low temperatures in February that wiped out the 2016 peach crop followed by extreme low temperatures in April followed by an extreme drought. All farmers suffered losses on almost every crop either by lower yields and/or increase operating expenses. Every farmer got a chance to evaluate their risk management plan. Did they have coverage and was it at the right level?
Nineteen peach growers had purchased crop insurance for 2016. These policies provided $581,687 in coverage and the growers paid $25,926 in premiums. These policies paid out $581,688 or 100% of the potential liabilities! That’s right! These growers were paid the full amount of their coverage and most had their money before June 30th.