A Report from the

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

May 2019
ii

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

Additional Crop Insurance Options for Organic Producers............................................................ 3

Contract price option offered under the Contract Price Addendum............................................ 3

Whole-Farm Revenue Protection (WFRP) ................................................................................. 4

New Policy Development............................................................................................................ 4

Cooperative Efforts with Other USDA Agencies to Obtain Data .................................................. 4

AMS Specialty Crops Market News........................................................................................... 4

AMS Livestock, Poultry and Grain Market News...................................................................... 5

NASS Organic Producer Surveys ............................................................................................... 6

2018 Farm Bill ............................................................................................................................ 6

Outreach and Education.................................................................................................................. 7

Conclusion ...................................................................................................................................... 7
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 2019 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 sixth annual report to Congress on the progress 

of implementing organic price elections. 

Progress in Implementing Organic Price Elections

Over the past 5 years, RMA has made tremendous progress in implementing organic 

price elections, nearly tripling the number of organic price offerings. For the 2019 crop 

year, RMA will offer 80 distinct organic price elections. At this time 100 percent of the crops 

covered by Federal crop insurance for the 2019 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 with ARH 

plans of insurance, WFRP, nursery, clams, livestock policies, 508(h) submissions other than the cottonseed 

endorsement, 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 80. 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 price election requirements.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016 2017 2018

CROP YEAR

PERCENT OF INSURED CROPS WITH UNIQUE 

ORGANIC PRICE ELECTIONS

Crops Assessed for Organic Coverage

Crops with Organic price Elections
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 meets RMA’s data quality requirements and are the 

preferred data source for organic price elections. The data is accurate, unbiased, volume 

weighted, and representative. 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. 

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.3

 

 3 Contract price addendum availability can be found at https://www.rma.usda.gov/en/Topics/OrganicCrops/Contract-Price-Addendum-Eligibility-by-Commodity
4

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. For the 2016 crop year WFRP was expanded to cover all states and counties 

nationwide. Organic coverage under WFRP has grown rapidly, up to $2.7 billion in total liability 

for the 2018 crop year. 

New Policy Development

RMA is currently researching new insurance designs to better handle commodities with less data, 

including organic agriculture. The most promising concept is designed to use 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 it. In so doing, the new plan of insurance would 

overcome the lack of data that hinders RMA’s ability to improve and expand 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).

The table below contains a list of organic crops reported by AMS Specialty Crops Market News 

at the Shipping Point level. At this time, RMA has developed organic price elections for all crops 

reported at the Shipping Point level by AMS Specialty Crops Market News where RMA has an 

applicable plan of insurance, except as noted below.

AMS Organic Specialty Crop Reporting (Shipping Point)

Crops for which 

RMA offers organic 

coverage in location(s) 

where AMS collects 

data

Crops for which 

RMA offers 

organic coverage 

in location(s) other 

than where AMS 

collects data

No organic 

coverage is 

provided by 

RMA

Crops not insured by RMA
5

Apples, Avocados, 

Blueberries, Cabbage, 

Lemons, Grapes,

Onions, Oranges, 

Pears, Potatoes, 

Strawberries, Tomatoes

(Grape), Tomatoes 

(Plum)

Green Beans, 

Sweet Corn, 

Tomatoes

Bell Peppers, 

Sweet Potatoes

Anise, Artichokes, Asparagus, 

Broccoli, Beets, Cantaloupes,

Carrots, Cauliflower, Celery, 

Cilantro, Eggplant, Greens, 

Honeydew, Lettuce, Misc.

Melons, Mango, Misc. Berries,

Oregano, Parsley, Radish, 

Spinach, Squash, Watermelons

In the table above:

• Organic coverage refers to insurance plans that cover a single crop. All organic crops 

can be covered with an organic price under the Whole Farm Revenue Protection plan of 

insurance.

• Strawberries are insured under an Actual Revenue History (ARH) plan of insurance,

which allows for organic coverage.

• Green beans are not insurable in California, the only shipping point reported by AMS. 

The existing plan of insurance covers production in New York, North Carolina, and 

Virginia. Beginning with the 2017 crop year, RMA offered an organic price election in 

these three states, however expanding reporting to include these states would help 

RMA enhance the accuracy of these organic price elections. 

• Tomatoes are insurable under two different plans of insurance. In Central/South 

Florida, tomatoes are insurable under a cost of production plan of insurance and price 

data is insufficient to determine organic costs of production. In other states (Alabama, 

Arkansas, California, North Florida, Georgia, Maryland, Pennsylvania, South Carolina, 

Tennessee, and Virginia), tomatoes are insurable under a yield-based plan of insurance 

and expanded reporting would help RMA to develop organic price elections. The 

existing plan of insurance covers production for cherry, grape, plum, round, and other 

unspecified types. In covered states, AMS is currently only reporting the grape type.

• Bell peppers are only insurable under a cost of production plan of insurance in Florida.

AMS currently does not report data for Florida. Expanded reporting to include Florida 

could help RMA develop an organic price election but price data alone is insufficient 

because organic costs of production are also needed.

• Sweet potatoes are insured under a 508(h) Submission and are exempt from Federal 

Crop Insurance Corporation price requirements. They are insurable only in Louisiana, 

and AMS collects data for California. 

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.
6

Reporting on organic prices for dry edible beans was added in September 2015. Data for dry 

edible beans is now reported at two different points in the supply chain and are reported by type, 

which has contributed to RMA’s development of new price elections.

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. Some crops have organic price elections derived from other data sources. 

Crop Reported 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. 

RMA continues to work with NASS to improve survey questionnaires to increase the likelihood 

that organic data collected will be able to be published. To ensure NASS is able to continue 

conducting organic surveys on an annual or biennial basis beyond the 2018 crop year, a 

designation of funds specifically for organic data collection may be necessary.

2018 Farm Bill
7

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 currently 

working with NASS to implement this change. RMA will evaluate any additional data provided 

by NASS to assess whether additional organic price elections can be offered. 

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 2018, 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, Napa Valley 

Grapegrowers’ Organic Winegrowing Conference, Florida Organic Food and Farming 

Summit, FARMWALK 2018: Organic Orchard Pest Management, Minnesota Cover 

Crop Workshop, Washington Small Fruit Conference, the Great Lakes Fruit, Vegetable, 

and Farm Market EXPO;

• Funded a webinar series to educate growers on conducting variety trials on organic and 

specialty crop farms. The series was produced through a partnership with the Organic 

Seed Alliance, University of Wisconsin- Madison, and MOSES; and

• Met with organic producers in California, Illinois, Texas, and Washington.

Conclusion

RMA is pleased to report significant achievement in developing organic price elections. For the 

2019 crop year, 100 percent of the crops insured by Federal crop insurance have been assessed 

for organic coverage. Organic price elections are now offered everywhere that data is available. 

Creating organic price elections for additional crops will be 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. A potential solution for select crops going 

forward is RMA’s ongoing work to explore new plans of insurance that could allow 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. 

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.