A Report fromthe

Risk Management Agency,

U.S. Department of Agriculture,

regarding:

The Department of Agriculture’s Annual Report to the 

Committee on Agriculture of the U.S. House of Representatives 

and the Committee on Agriculture, Nutrition and Forestry of the

U.S. Senate Regarding the Progress Made in Developing and 

Improving Federal Crop Insurance for Organic Crops

June 2020
Contents

Introduction..................................................................................................................................... 1

Progress in Implementing Organic Price Elections........................................................................ 1

Crops that do not require an organic price election .................................................................... 2

Data quality requirements ........................................................................................................... 2

Existing data sources................................................................................................................... 3

Cooperative Efforts with Other USDA Agencies to Obtain Data .................................................. 3

AMS Specialty Crops Market News........................................................................................... 3

AMS Livestock, Poultry and Grain Market News...................................................................... 3

NASS Organic Producer Surveys ............................................................................................... 4

2018 Farm Bill ............................................................................................................................ 4

Additional Crop Insurance Options for Organic Producers............................................................ 5

Contract price option offered under the Contract Price Addendum............................................ 5

Whole-Farm Revenue Protection (WFRP) ................................................................................. 5

New Policy Development............................................................................................................ 5

Outreach and Education.................................................................................................................. 5

Conclusion ...................................................................................................................................... 6
1

Introduction

The Risk Management Agency (RMA) provides this report, pursuant to Section 508(c)(6)(D) of 

the Federal Crop Insurance Act, as amended by Section 11023 of the Agricultural Act of 2014:

The Corporation shall submit to the Committee on Agriculture of the House of 

Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate 

an annual report on progress made in developing and improving Federal crop insurance 

for organic crops, including:

i. the numbers and varieties of organic crops insured;

ii. the progress of implementing the price elections required under this 

subparagraph, including the rate at which additional price elections are adopted 

for organic crops;

iii. the development of new insurance approaches relevant to organic producers; and

iv. any recommendations the Corporation considers appropriate to improve Federal 

crop insurance coverage for organic crops.

This report provides: 1) a brief summary of our previous reports regarding our progress in 

establishing organic price elections and alternative options for organic coverage; 2) information 

on the availability of organic price elections for the 2020 crop year; 3) our ongoing efforts to 

obtain additional data and information to aid future development of price elections for crops for 

which we do not yet offer organic price elections1

; and 4) recommendations to improve RMA’s 

ability to set organic price elections. This is the seventh annual report to Congress on the 

progress of implementing organic price elections.

Progress in Implementing Organic Price Elections

In recent years, RMA has made tremendous progress in implementing organic price elections. 

For the 2020 crop year, RMA will offer 82 distinct organic price elections. At this time 100 

percent of the crops covered by Federal crop insurance for the 2020 crop year have been assessed 

for organic coverage2

.

1 ‘Organic price election’ refers to organic crops that receive a price election that is greater than the conventional 

price election. Organic crops that do not receive an organic price election are still insurable at conventional price 

election values, even if a premium price above that of the conventional practice is not available. 2 Based on the distinct number of crops listed in RMA’s online Actuarial Information Browser. Crops insured with 

the Actual Revenue History plan of insurance, Whole Farm Revenue Protection, nursery, clams, livestock policies, 

508(h) submissions (other than caneberries, the cottonseed endorsement, and hemp), and crop policies that require a 

contract are not included in the total. Crops that have been assessed for organic coverage but do not require an 

organic price election are counted toward meeting the requirement of offering organic coverage but are not included 

in the total crop count of 82. For those commodities identified as having an organic price, it does not mean RMA 

offers an organic price for all types and locations.
2

Crops that do not require an organic price election

Only 19 crops do not currently receive a distinct organic price election. These are identified as 

“Crops Assessed for Organic Coverage” in the chart below. These crops do not currently have an 

RMA established organic price election because either: a) there is no known organic production 

in insured areas; b) there is limited production and no available data that meets RMA’s data 

quality requirements; or c) pricing data suggests these organic crops do not receive a premium 

over conventional products.

These crops are: alfalfa seed, all other citrus trees, canola, carambola trees, chile peppers, cigar 

filler tobacco, cigar wrapper tobacco, fire cured tobacco, forage seeding, lemon trees, lime trees, 

limes, macadamia trees, mango trees, peppers, processing apricots, processing freestone peaches, 

sugar beets, and tangors.

Data quality requirements

All of RMA’s previous reports have stressed the importance of RMA’s data quality requirements 

and the need for more data in order to develop additional organic price elections. The lack of 

available quality data continues to be the single most significant constraint to offering additional 

organic price elections. In order to meet the data quality requirements, the data must reflect a 

representative sample of the relevant organic producer population, be accurate, unbiased, and be 

available to RMA on a recurring basis. Additionally, to use data directly to establish an organic

Section 508(h) of the Federal Crop Insurance Act allows private parties to develop insurance products(commonly 

referred to as 508(h) Submissions), including: 1) crop insurance policies, 2) provisions of policies, or 3) rates of 

premium. The 508(h) Submissions are exempt from Federal Crop Insurance Corporation requirements limiting 

coverage levels, rates, and prices under Section 508(h)(2). RMA does not have the regulatory authority to require 

the owners of these products to create organic price elections for their submissions. Therefore, crops and/or crop

types insured under 508(h) submissions are considered exempt from RMA’s organic priceelection requirements.
3

price election, it must be volume-weighted and must reflect the price received by producers (i.e., 

the price must not include the cost of value-added services beyond the farm-gate level).

Existing data sources

The primary data sources RMA uses to establish organic price elections are the National 

Agricultural Statistics Service (NASS), the Agricultural Marketing Service (AMS), and private 

industry sources.

When available, NASS data typically meet RMA’s data quality requirements and are the 

preferred data source for organic price elections. Prices are often reported at the farm-gate level. 

For some crops, prices are reported at a price point located further in the supply chain and 

separate post-harvest cost information is still required to determine farm-gate values.

AMS Market News collects organic and conventional price quotes at various points in the supply 

chain (e.g., farm-gate, Shipping Point, Terminal Market, Retail). For some crop types (mainly 

organic grain and feedstuffs), prices are volume-weighted and are reported at the farm-gate level. 

For other crop types (most specialty crops, including fruits and vegetables), reported prices are 

not volume-weighted and are reported at points located further in the supply chain. For price data 

that is not volume-weighted, RMA cannot use the data directly to establish organic price 

elections but can still use the prices to establish factors (or ratios) showing the historical 

premium of the organic price relative to the conventional price. These factors are applied to the 

conventional price election to establish organic price elections.

Trade groups and industry sources also contribute data that RMA uses to develop organic price 

elections. Private data sources fill a critical gap because they are often the only source of data 

available for specific crop types or marketing regions. RMA makes every effort to verify that 

proprietary data meets our data quality requirements. However, in some cases, RMA might not 

be able to verify the sample sizes and representativeness of private data sets. In other cases, the 

price data may not be reported at a farm-gate level. Also, RMA cannot guarantee the future 

availability of such data sets because a private party offers data to RMA at their discretion. Thus, 

not all private data can be used to develop organic price elections.

Cooperative Efforts with Other USDA Agencies to Obtain Data

AMS Specialty Crops Market News

AMS Specialty Crops Market News collects and reports organic price data on a wide range of 

crops at price points located throughout the supply chain. The Shipping Point price is the price 

point that best approximates the price received by the farmer because this price contains fewer 

value-added services than prices further down the supply chain (i.e. Terminal Market/Wholesale 

and Retail). There were no major changes to AMS organic reporting in 2019.
4

AMS Livestock, Poultry and Grain Market News

Prices for organic grains and feedstuffs are reported, when available, both at the farm-gate level 

and delivered to an elevator. Some crop prices are also reported for forward contracts. Regular 

reporting on some organic grains is limited to the point that the data does not meet RMA’s data 

quality standards. Given the irregularity of price reporting of these crops, it is not possible to 

determine a season average price or an appropriate factor to establish an organic price election 

using these data.

The table below contains a list of organic crops reported by AMS Livestock, Poultry and Grain 

Market News. RMA has developed organic price elections for all crops regularly reported by 

AMS Livestock, Poultry and Grain Market News, with the exception of triticale, which is a 

508(h) submission. 

Crop Reported by AMS RMA Organic Coverage

Barley Yes

Corn Yes

Dry Edible Beans Yes

Grass and Alfalfa Hay Yes

Millet Yes

Oats Yes

Roasted Soybeans -not insured

Rye Yes

Sorghum Yes

Soybean Meal -not insured

Soybean Oil -not insured

Soybeans Yes

Spring Wheat Yes

Straw -not insured

Triticale Insured as a 508(h) submission.

Winter Wheat Yes

NASS Organic Producer Surveys

With the release of the 2016 Organic Producer Survey in September 2017, NASS has completed 

five organic surveys (2008, 2011, 2014, 2015, and 2016). RMA has provided funding for three of 

the five surveys. Since 2011, RMA has worked with NASS to improve survey methods and 

expand data collection to include specific crop types and varieties not listed in previous surveys. 

The 2016 survey reflected over fourteen thousand certified organic producers and five million 

acres of organic farmland.

2018 Farm Bill

The 2018 Farm Bill contained the following language “Data collected by the National 

Agricultural Statistics Service, whether published or unpublished, shall be provided in an 

aggregate form to the Corporation for the purpose of providing insurance.” RMA is still working
5

with NASS to implement this change. Once provided, RMA will evaluate such data from NASS 

to assess whether it can contribute to additional organic price elections.

Additional Crop Insurance Options for Organic Producers

Contract price option offered under the Contract Price Addendum

The contract price option allows organic producers and those transitioning to organic practices 

who receive a contract price for their crop to get a crop insurance guarantee that is more 

reflective of the actual value of their crop. The contract price option is available for most crops 

and allows producers to use their personal contract price as their price election or choose existing 

crop insurance price elections.

Whole-Farm Revenue Protection (WFRP)

The Whole-Farm Revenue Protection (WFRP) plan of insurance provides a risk management 

safety net for all commodities produced on the farm under one insurance policy. This insurance 

plan is tailored for any farm with up to $8.5 million in insured revenue, including farms with 

specialty or organic commodities (both crops and livestock), and those marketing to local, 

regional, farm-identity preserved, specialty, or direct markets. All certified organic commodities 

may be insured at their farm-level organic prices provided the farm meets eligibility 

requirements.

New Policy Development

RMA is finalizing development of a new plan of insurance, Production and Revenue History 

(PRH), designed to better handle commodities with less data, including organic agriculture. PRH 

uses the producer’s personal production and revenue history to establish a yield-based guarantee 

valued at what the producer has historically been able to obtain for their production. In so doing, 

PRH overcomes the lack of price data that hinders RMA’s ability to improve and expand organic 

price elections. RMA plans to offer PRH initially for strawberries, as soon as the 2021 or 2022 

crop year, with other crops to follow in subsequent years.

Outreach and Education

Throughout the year, RMA staff has engaged in public outreach to educate producers about 

organic crop insurance options and to gather feedback about existing programs. In 2019, RMA:

• Attended industry conferences and grower meetings, presenting information about 

organic coverage and WFRP. Conferences attended include: Midwest Organic and 

Sustainable Education Service (MOSES) Organic Farming Conference, Family Farmed 

Good Food Expo, University of Minnesota Organic Field Day, Organic Agronomy 

Training Series, National Sunflower Association Board Meeting, Corporation for 

Community and Economic Development United: Farm Finance Management 

Workshop, Alabama Fruit and Vegetable Conference, Women in Sustainable Ag 

Conference, and Center for Latino Farmers Small Farms Conference

• Created a New Organic Farming and Transitional Farming Frequently Asked Questions 

page on the RMA website; and
6

• Met with organic producers in California, Iowa, New Mexico, Ohio, and Texas.

Conclusion

RMA’s efforts to increase organic price election offering has resulted in tremendous growth in 

organic crop insurance participation. Since 2013, the number of acres has more than doubled 

while liability has tripled.

Creating organic price elections for additional crops is dependent upon data availability. Organic 

price data that meets RMA standards for these crops is especially scarce, and data that meets the 

requirements for actuarial soundness and good insurance principles is necessary before organic 

prices can be added for additional crops. Availability of such data has generally not increased 

over the past decade. As such, RMA has taken proactive steps to create an insurance policy that 

generates prices for insurance offers using producers’ own revenue history.

RMA continues efforts to locate and analyze new sources of data. Every crop is evaluated 

annually to determine if there are new or updated sources of organic information sufficient to 

develop or enhance organic price elections. RMA will continue to pursue opportunities for the 

acquisition of additional organic price data and information, given funding availability.

Whenever possible, RMA will continue to improve the farm safety net by adding additional 

organic price elections.