As climate change increases the likelihood of crop-decimating droughts and floods, crop insurance is often prohibitively expensive or unavailable to farmers who grow fresh fruits and vegetables.
Their plight has left some smallholders questioning their future on the land.
Efforts to increase the availability and affordability of crop insurance are being considered in Congress as part of the next farm bill, but the divide in interests between large and small farmers looms over the debate. There is.
The threat to farms from climate change is not hypothetical. A 2021 study by Stanford University researchers found that 19% of the $27 billion in crop insurance payments from 1991 to 2017 was due to rising temperatures, and that further warming could lead to future crop losses. It concluded that the potential for loss would be significantly increased.
About 85% of the country's commercial crops, including row crops like corn, soybeans and wheat, are insured, according to the National Sustainable Agriculture Coalition, a nonprofit group that promotes environmentally friendly food production.
By contrast, as of 2022, only half of the land devoted to specialty crops (supermarket staples like strawberries, apples, asparagus and peaches) was insured, according to federal statistics.
Among those living without insurance is Bernie Smialowski, who grows potatoes on 700 acres and 12 acres of strawberries in western Massachusetts. His soil is considered some of the most fertile in the country. The tradeoff is proximity to the Connecticut River, but that becomes increasingly tenuous as global warming increases the likelihood of flooding.
Smialowski lost about $1.25 million worth of potatoes last year when heavy rains hit the area and flooding caused river water to seep into his fields. Severe weather continued for three consecutive years.
“We've had two very wet years sandwiched between one of the driest years we've ever seen,” he said. “We can't have a year like last year.”
In a normal year, you would spend $2,000 per acre and just break even at a 20% profit. Smialowski said the cheapest plan presented to him (about $170 per acre per year) would be a significant expense, but would only cover 60% of the wholesale price of potatoes.
He thinks he needs insurance, but for now he's just hoping for the best.
And professional farmers say there are few agencies working with them. “I only know of one in the state,” says Mike Kepple, who grows strawberries on seven acres near Oshkosh, Wisconsin.
Experts say their hesitation is due to economic reasons. Agents earn more money by insuring vast tracts of corn and soybeans. According to the U.S. Department of Agriculture, the average farm in the United States is 445 acres, but the average specialty farm is much smaller.
Additionally, most insurance plans cover a single crop, so professional farmers who grow a variety of fruits and vegetables may need to purchase multiple policies.
Companies offering crop insurance emphasize that their plans must provide payouts approximately equal to the premiums received.
Kristen Ward, regional vice president of crop insurance for Farm Credit Mid-America, said the company works with farmers in six states and covers crops from barley to grapes, but there is a growing gap in specialty crops. He said that it was not possible to do so in areas where conditions were not suitable. fruits and vegetables.
The premium offered to farmers is risk-based and “assessed according to where the crop is grown,” she said. “It may look different in other parts of the country.”
Products are emerging to fill this gap, including Whole Farm Revenue Protection, a comprehensive insurance policy for farms that grow multiple crops.
More than 220,000 farms in the United States grow specialty crops, according to the American Farm Bureau Federation, an industry group. But according to federal statistics, he sold only 18,659 in the 10 years since the farm-wide profit plan was provided.
Advocates for small and specialty farmers are asking Washington for relief.
The federal crop insurance program was born during the Great Depression, when the Dust Bowl devastated farmlands. Under the $18 billion program, the government will pay half of farmers' crop insurance premiums to ensure a safe food supply.
In December, Congress extended the current Farm Bill until 2024, but lawmakers have not been able to agree on what happens after that.
The National Sustainable Agriculture Coalition recently released a series of recommendations, including easing access to farm income insurance and expanding disaster relief.
“Floods, droughts and hurricanes are all becoming more frequent and more intense,” said Billy Hackett, the Coalition's policy expert. “That’s why it’s important to have a safety net.”
Sen. Debbie Stabenow, D-Mich., called for language in the farm bill to give professional farmers access to highly subsidized insurance policies and streamline the application process for products such as whole-farm profit coverage. proposed. “I will always fight for specialty crops to be at the center of agricultural policy,” Stabenow said in his statement.
A standalone bill co-sponsored by Sen. Cory Booker, D-N.J., would provide incentives for insurance agents to work with small and specialty crop farmers. The bill would provide subsidies based on the complexity of the insurance plan, rather than the size of the premium.
But commodity farmers are wary of changes to crop insurance programs.
Danny Munch, an economist with the American Farm Bureau Federation, said corn, soybean and wheat producers are concerned that “the program is working in a way that sets everyone back, rather than closing the gaps that exist in specific crops.” He said he was concerned about widespread changes.
Some lawmakers oppose the changes due to these concerns.
“Iowa farmers have been demanding for years that the next farm bill leave crop insurance in place,” Sen. Charles E. Grassley, R-Iowa, which relies heavily on commercial crops such as corn and soybeans, said in a statement. He kept telling me to keep it.” “There's no need to mess with something that isn't broken.”
The impasse has led some farmers to seek other types of support.
After Smialowski's Massachusetts crops were destroyed last year, he and other farmers affected by flooding appealed to Gov. Maura Healey for help, which came in the form of disaster relief. Although Smialowski was grateful, he said his share only covered about 20% of the losses.
The aid was only temporary, and they could only hope for better weather in the future.
“When times are bad, you try to do the best you can and hope next year is better,” he said.