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.
Crop insurance for peaches are available in 4 counties (Hampden, Hampshire, Middlesex & Worcester). Farmers in other counties can request a “written agreement” which may allow them to purchase a policy based on the policies sold in the insured counties. Growers in the non-insured counties can also purchase a policy from the USDA Farm Service Agency(FSA) under the Non-Insured Crop Disaster Assistance Program (NAP).
|
Peaches # of Policies |
Liabilities | Total premiums | USDA Subsidy | Grower Premiums | Indemnities |
|---|---|---|---|---|---|
| 19 | $581,687 | $90,986 | $65,060 | $25,926 | $581,688 |
Now is the time for fruit growers to review their coverage for 2017. The sales closing date for coverage of perennial crops is November 20th, 2016. Growers can purchase a crop insurance policy for apples, peaches and cranberries. All other crops are covered by NAP which is sold by your local FSA office.
Crop insurance is sold and delivered through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers or on the RMA website at: www.rma.usda.gov/tools/agents/.
UMass Extension has been awarded the 2017 Targeted States grant by the USDA Risk Management Agency (RMA). UMass Extension is available to assist growers in their evaluation of their risk management plan and the available policies.
|
|
2013 |
2014 |
2015 |
2016 |
|---|---|---|---|---|
|
bearing acres |
340 |
340 |
350 |
NA |
|
yield per acre-tons |
4.12 |
3.67 |
4.24 |
0 |
|
total productiontons |
1400 |
1429 |
1485 |
0 |
|
utilized production-tons |
1300 |
1187 |
1455 |
0 |
|
$ per ton |
$2,770.00 |
$2,240.00 |
$2,330.00 |
NA |
|
$ value utilized productionmillions |
$3.60 |
$2.66 |
$3.40 |
0 |
|
yield per acre-20 lb. boxes |
412 |
367 |
424 |
0 |
|
total production-20 lb. boxes |
140000 |
142900 |
148500 |
0 |
|
utilized production-20 lb. boxes |
130000 |
118700 |
145500 |
0 |
|
$ value per 20 lb. box |
$27.69 |
$22.41 |
$23.37 |
NA |
|
paid out in crop insurance |
0 |
0 |
0 |
$581,688** |
|
|
*USDA NASS Noncitrus Fruits and Nuts, 07.06.16 |
**UMass Extension Risk Management Program |
|
|
