2007 Press Releases
Subcommittee endorses crop insurance fairness
For Immediate Release Contact: Laura Trivers (301-229-6481)
Barbara Haumann (413-774-7511, Ext. 20)
Subcommittee endorses crop insurance fairness
OTA Executive Director calls it a very positive step for organic producers
WASHINGTON, D.C. (June 20, 2007) – Organic farmers are one step closer to fairly priced crop insurance thanks to action Tuesday by an Agriculture subcommittee, according to the executive director of the Organic Trade Association (OTA). Currently, organic farmers are charged a 5% premium over the cost a conventional farmer pays. And, when organic farmers must collect on their insurance policies, they are compensated at the price of the conventional crop, not the higher organic price.
"We greatly appreciate Rep. Bob Etheridge's leadership and the Subcommittee's commitment to help organic farmers," said OTA Executive Director Caren Wilcox. "Their steps will go a long way toward eliminating the penalties experienced by organic producers who depend on crop insurance. The inequities of the crop insurance system are a key impediment to more farmers converting their land to organic production."
The House Agriculture Committee's Subcommittee on General Farm Commodities and Risk Management Tuesday marked up sections of the 2007 Farm Bill under their jurisdiction. In the legislative proposal that will now be considered by the full Agriculture Committee in the coming weeks, subcommittee members call for eliminating or reducing the organic premium and providing compensation for crop loss at the actual price of the organic crop. In addition, the Federal Crop Insurance Corporation (FCIC) would be required to submit an annual report to Congress detailing progress made in developing and improving federal crop insurance for organic crops.
In May, Wilcox testified before the subcommittee at a hearing examining crop insurance policies. Her testimony and OTA's comprehensive Farm Bill proposal can be found at www.ota.com.
The Organic Trade Association (OTA) is the membership-based business association for organic agriculture and products in North America. Its 1,600 members include growers, shippers, processors, certifiers, farmers' associations, distributors, importers, exporters, consultants, retailers and others. OTA encourages global sustainability through promoting and protecting the growth of diverse organic trade.
Headquarters: P.O. Box 547, Greenfield, MA 01302 USA (413) 774-7511 fax: (413-774-6432 www.ota.com
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Washington, DC Office: (202) 338-2900
