Georgia Organics’ relationship with U.S. Sen. Raphael Warnock goes back to August of 2022, when Warnock staffer Brandon Honeycutt visited Julia Asherman of Rag & Frass Farm in Jeffersonville, Ga. Honeycutt has since moved to the Senate Agriculture Committee, but meetings and communications between Georgia Organics and Warnock’s staff have continued regularly. Photo by Farmer Advocacy Director Michael Wall (Georgia Organics).
By Michael Wall
Michael Wall is the Director of Advocacy at Georgia Organics.
Ever since the Farm Bill expired on Sept. 30, 2023, federal programming for U.S. farmers has been reauthorized in temporary and short-term ways. This has left many farmers and ranchers feeling fraught about federal support, especially programs administered by the U.S. Department of Agriculture and funded through the Farm Bill.
It’s safe to say that the future of conservation, crop insurance, climate smart ag, the National Organic Program, and agricultural research is obscured by the nasty bipartisan mist that clouds the U.S. Capitol. There is even a chance that the Farm Bill won’t be reauthorized until 2025.
But there is some good news to share.
After many trips to Washington D.C., including two so far in 2024, Georgia Organics Farmer Advocacy efforts were able to secure Sen. Rev. Raphael Warnock as a co-sponsor of a foundational piece of legislation that would re-energize farm safety nets for diversified small- and mid-scale organic growers.
This legislation proposal, the Whole Farm Revenue Protection[ME2] Improvement Act (WFRP Improvement Act), addresses common barriers that have prevented diversified organic growers from accessing crop insurance — the cornerstone of a sound risk management strategy.
“ “As our climate continues to become more extreme, ensuring farms of all sizes have access to crop insurance is imperative to Georgia’s economy. This legislation is an important piece of my broader efforts to protect and strengthen crop insurance access for all Georgia farmers. I’m going to continue working to secure this legislation in this year’s Farm Bill.””
Georgia Organics is especially proud of the partnership with Sen. Warnock’s office because organic growers have been disenfranchised from crop insurance programs since the launch of the National Organic Program. That’s because crop insurance programs insure crops based on conventional prices and, in passing, ignore the premiums that organic farmers work so hard for.
Not only that, but crop insurers are typically compensated for their work through commissions, or percentages, of the overall crop insurance contract. There is little incentive for them to work with a diversified, small-scale grower. The paperwork and workload increase for each additional crop, while the size of the contract, and commission, is smaller. Here’s an informed overview of what this means for farmers operating on different scales.
FINANCIAL INCENTIVES AND DISINCENTIVES IN CROP INSURANCE:
Challenges for Small-Scale, Diversified Growers
COMPENSATION STRUCTURE
Crop insurers are typically compensated through commissions or percentages of the overall crop insurance contract. This means they earn a portion of the premiums paid by the farmer for the insurance coverage.
INCENTIVE STRUCTURE
The incentive for insurers lies in maximizing their commissions, which often correlates with the size and simplicity of contracts. Insuring a larger farm with fewer crop varieties is more financially appealing because:
· The insurer avoids the additional paperwork and workload associated with each additional crop, which minimizes complexity and administrative burden.
· Smaller, diversified farms with multiple crops on fewer acres (e.g. 30 crops growing on five aces) require more paperwork and effort for relatively smaller commission returns.
Preference for *Large-Scale Farms
Given these factors, insurers are more likely to prefer working with larger commodity farmers who:
· Have larger acreage but fewer crop varieties (e.g. 300-acre commodity farmers who only grow three or four crops a year).
· Offer larger, simpler contracts that generate higher commissions with less administrative overhead.
Disadvantage for Small-Scale, Diversified Growers
In contrast, insurers are less likely to prefer working with small-scale growers with diversified crops on limited acreage due to:
· Higher paperwork and administrative burden for each crop.
· Smaller overall contracts with lower insurer commissions due to their scale and diversification.
*Acknowledgement: Please note, we are not disparaging large farms that grow a small number of crops. We are incredibly proud to be a part of Georgia’s rich agricultural heritage and community. We are merely searching for — and advocating for — insurance solutions that equitably safeguard the interests of organic farms cultivating many, diverse crop varieties.
TAKEAWAYS & KEY RESOURCES
The WFRP Improvement Act strengthens the existing whole farm revenue protection program by streamlining paperwork, expanding the Micro Farm pilot, raising the limit to annual revenue expansion, strengthening the diversification discount, and compensating crop insurance agents who sell WFRP appropriately.
The WFRP Improvement Act alone isn’t enough to solve the farm crisis many growers in Georgia face, but it would provide some financial assurance at a time when farmers need it the most.
You can learn more about crop insurance, delve into the vital issues concerning Georgia Organics' farmers, and explore the impactful work we're undertaking to drive change. Take action now by tapping the buttons and links below.
Georgia Organics’ Farmer Advocacy Efforts to Date:
· Sept. 14, 2023, Trips to US Capitol Lead Congressman to On-Farm Visit
· July 28, 2022, GO Goes to Washington to Support Organic Farmers
· July 28, 2022, Georgia Organics Launches Farmer Advocacy
· July 28, 2022, Advocacy Efforts Bring Top USDA Officials to Georgia
· Oct. 20, 2022, The Next Commissioner of Agriculture
To learn more about Georgia Organics, visit georgiaorganics.org and follow us on Facebook, Instagram, and LinkedIn by searching the handle @GeorgiaOrganics or Georgia Organics.