Page 66 - Grapevine JanFeb 2022
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Around The Vineyard
Around The Vineyard
Vineyard Crop Insurance
By: Trevor Troyer
Vice - President of Operations
for Agricultural Risk Management
R isk Management is always something that Insurance Act in 1980. The 1980 Act expanded the
is subjective to a grower. How much risk
number of crops insured and areas in the US. In
do you feel comfortable with? Or maybe
was created. RMA’s purpose was to administer the
how much risk are you willing to take, even if you 1996 the USDA Risk Management Agency (RMA)
aren’t that comfortable? Farmers are naturally Federal Crop insurance programs and other risk
risk takers, otherwise they would not be farm- management related programs.
ing. Mother nature is unpredictable, just when
you think everything is going to turn out right it Grape Crop Insurance goes back to 1998, the
doesn’t. Obviously, it turns out ok more often than current policy was written in 2010. Crop insurance
not. But what about those years when it doesn’t? is a partnership with Insurance companies and
Sometimes you can have several bad years in a the FCIC. Crop insurance is partially subsidized
row. Crop Insurance is a good tool for that. through the USDA. Currently there are 13 Approved
Insurance Providers authorized to write crop insur-
The Federal Crop Insurance Corporation (FCIC) ance policies with the USDA. Prices and premiums
was created in 1938. Originally coverage was lim- are set by the USDA per crop, state and county.
ited to major crops. It was basically an experiment There is no price/premium competition from one
at that time, until the passage of the Federal Crop company to the next because of this. Independent
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