Specialty crop farmers, facing escalating climate threats like droughts and floods, are finding it increasingly difficult to secure affordable or even available crop insurance, raising concerns about the viability of their operations.
The predicament has left many small-scale farmers contemplating their future in agriculture.
Efforts to address the issue are underway in Congress, with discussions on enhancing the accessibility and affordability of crop insurance as part of the upcoming farm bill. However, the debate is fraught with divisions, particularly between the interests of large-scale and small-scale farmers.
The impact of climate change on farms is substantiated by a 2021 study from Stanford University, which attributes 19 percent of the $27 billion in crop insurance payouts from 1991 to 2017 to rising temperatures. The study further warns of increased future crop losses with additional warming.
While approximately 85 percent of the nation’s commodity crops, such as corn and soybeans, are insured, federal statistics reveal that only about half of the land devoted to specialty crops, including strawberries, apples, and peaches, was insured in 2022.
One such farmer grappling with the lack of insurance coverage is Bernie Smiarowski, who operates a 700-acre potato farm in western Massachusetts alongside 12 acres for strawberries. Despite possessing fertile soil, the proximity to the Connecticut River poses a constant threat of flooding, exacerbated by a warming climate.
Last year, heavy rains and flooding resulted in losses of nearly $1.25 million worth of potatoes for Mr. Smiarowski, marking the third consecutive year of challenging weather conditions.
Even in typical years, with expenses averaging $2,000 per acre, profit margins range from 20 percent to break-even. However, the least expensive insurance plans quoted to Mr. Smiarowski, around $170 per acre annually, would cover only 60 percent of the potatoes’ wholesale price, making it a significant financial burden.
Specialty farmers like Mike Koeppl, who grows strawberries on seven acres in Wisconsin, face additional hurdles, including limited options for insurance agents willing to work with them due to financial disincentives.
The insurance industry asserts that premiums are based on risk and vary according to the crop’s location. However, for specialty farmers cultivating a variety of crops, the need to purchase multiple policies further compounds the financial strain.
To address such gaps, alternative products like whole farm revenue protection have emerged. Yet, uptake remains relatively low, with only a fraction of specialty farmers opting for such coverage.
Advocates are urging lawmakers to intervene, calling for measures to ease access to comprehensive insurance policies and expand disaster relief efforts.
Senator Debbie Stabenow of Michigan has proposed legislative initiatives to provide highly subsidized insurance policies for specialty farmers and streamline application processes for coverage options like whole farm revenue protection.
However, proposed changes have met resistance from some quarters, particularly among commodity farmers concerned about potential disruptions to the existing crop insurance program.
Amid the impasse, farmers like Mr. Smiarowski have turned to state-level assistance, seeking relief from the government to mitigate losses incurred from natural disasters. However, such support remains limited and temporary, leaving farmers reliant on favorable weather conditions for future resilience.
As the debate over crop insurance reform continues, the fate of specialty crop farmers hangs in the balance, with the need for comprehensive and equitable solutions becoming increasingly urgent.
