Crop Insurance Resource Roundup

Risk management is a crucial aspect of farming, particularly with the extreme weather conditions that are hitting the United States. A critical part of this is crop insurance. To get the basics, the United States Department of Agriculture’s Risk Management Agency developed a webpage with answers to common questions surrounding crop insurance. Below are some tools available for free online that can help farmers navigate how to effectively implement crop insurance.

Crop Insurance for Individuals

FLAG created a PDF intended as a training guide for the Federation of Southern Cooperatives that provides an in depth look into crop insurance for individuals. This document is available to anyone for free online. It covers everything there is to know behind the roles and rules of insuring crops through Federal Crop Insurance or a private insurer. The document also delves into what is covered under crop insurance, what to look for in a contract and much more.

Noninsured Crop Disaster Assistance Program

This program is available for producers that were hit by a natural disaster without crop insurance.

Utah State University Extension developed a presentation explaining everything there is to know about the Noninsured Crop Disaster Assistance Program.

The United States Department of Agriculture’s Farm Service Agency also offers an informative disaster assistance fact sheet focusing on the Noninsured Crop Disaster Assistance Program.

Organic Crop Insurance

The United States Department of Agriculture’s Risk Management Agency produced a fact sheet explaining the Contract Price Addendum, which now allows organic producers to insure crops at a set price specified in a contract. The addendum is applicable to 62 types of crops.

Corn and Soybean Crop Insurance

Iowa State’s Extension program offers two helpful PDF’s available through the Decision Tools section of its website. These free downloadable PDFs offer valuable insight into choosing crop insurance plans for corn and soybeans; the first of which provides a tool to compare different strategies for insurance on corn and soybeans, while the second compares the risk behind GRIP and GRP crop insurance for these crops.

Cover Crops and Crop Insurance

The National Resources Conservation Service put the Cover Crop Termination Guidelines online in a downloadable PDF format.

For a more in depth look, the National Sustainable Agriculture Coalition and the National Center for Appropriate Technology created a webinar that explains “when and how to terminate cover crops and maintain eligibility for crop insurance coverage of subsequently planted cash crops.”

Other Helpful Tools

University of New Hampshire Cooperative Extension collected various crop insurance fact sheet publications covering the following topics: apples, peaches, corn, fresh market sweet corn, forage production, forage seeding, nursery and insurance coverage for organic crops.

Discovering the Agriculture Mediation Program

For most farmers, a dispute with the United States Department of Agriculture (USDA) is an intimidating prospect. After all, the USDA is a large federal government agency, and some farmers can’t afford even basic legal services.

Enter the Agriculture Credit Act of 1987, which helped create Agriculture Mediation Programs in various states. Mediation is a free or low-cost alternative to legal action. While disputes can take years to resolve through legal action, mediation typically can be completed in a few sessions lasting hours. Thirty-eight states currently offer this type of program, and a federal mediation service is available to farmers located elsewhere.

How does a state obtain a certified USDA Agriculture Mediation Program?

Any state can apply to have a USDA certified Agriculture Mediation Program. An entity must first apply through the USDA in Washington, DC. This entity can be a university, a state department, a nonprofit or a company, but each faces a different set of conditions for compliance with the Code of Federal Regulations. The application process is extensive and requires a letter of recommendation from the state’s governor or the head of another appointed agency. If a state would like to apply, the governor or designated state agency official must notify a Farm Service Agency administrator on August 1.

If an applying institution passes the initial screening, its employees go through training and education administered by the federal Agriculture Mediation Program under the USDA. Once the training is complete and the institution has been approved to become an official USDA-recognized Agriculture Mediation Program, it must submit annual reporting to the USDA.

A certified Agriculture Mediation Program receives grant funding from the USDA equaling up to 70 percent of the program’s budget for covered cases. Coverage extends to cases involving agricultural loans, agricultural credit and adverse decisions by a USDA agency.

How can mediation help?

When someone faces an adverse USDA decision, that person may be offered mediation as an option under the Department’s informal appeals process. An individual can also contact a mediation program directly if he or she thinks it is a viable option. Mediation is entirely confidential, and no documents created during the process can be used in any legal action that might follow. Both parties are prepared by the mediator in advance of the mediation session. This may include financial counseling, acquiring proper documentation or any other preparations necessary for a specific case. The mediator acts as an entirely impartial third party, and either party can request a different mediator at any stage in the process. Some states also offer mediation to resolve issues outside of the USDA’s domain, such as disputes involving contracts with food processors or conflicts with neighbors, although 60 percent of mediation cases deal with farm loan programs.

Once both parties agree to mediation, a time and meeting location is determined. Depending on the issue, mediation can sometimes be completed over the phone. Whether mediation takes place by phone or in person, both parties and the trained mediator are present. Gayle Cooper, associate director of the Fulcrum Institute Dispute Resolution Clinic with locations in Idaho, Montana and Washington, estimates that the entire mediation process averages about three hours, depending on the complexity of the issue. While many states, including Idaho, Montana and Washington, offer these services for free, other states charge a small fee. Iowa, for example, charges $50 per hour. In many cases, that’s a more affordable option than paying for an attorney, who can charge anywhere from $100 to $1,000 per hour while pursuing legal action that might take months or years to resolve.

It’s important to note that mediation is very different from legal action in that the mediator has no decision-making power. He or she is simply the facilitator. If the two parties are able to come to an agreement, the mediator will create a binding document for both parties to sign.

USDA disputes:

The Agriculture Mediation Program was originally intended to help farmers respond to adverse USDA decisions without pursuing a legal course of action. Each state with an Agriculture Mediation Program covers cases involving the following eight USDA agencies or programs:

(1)  Farm Service Agency farm programs

(2)  Rural Development housing loans

(3)  Rural Development business loans

(4)  Rural Development water loans

(5)  Natural Resources Conservation Service wetland determinations

(6)  USDA decisions involving pesticides

(7)  National Forest Service grazing permits

(8)  Risk Management Agency crop insurance disputes

Agriculture Mediation Programs are also required to cover issues with agricultural credit and agricultural loans from the Farm Service Agency, as well as from commercial and private lenders.

Other disputes:

Not all states provide mediation services for disputes that do not involve the USDA. States that do offer this option cannot receive federal funding to do so. Each state that does offer non-USDA mediation has different provisions for the types of conflicts it can address. Elaine Bourne, program manager for Community Mediation Services in Maine, shares some examples of common disputes that Maine’s program can help with: farm and rural development loans, environmental or forestry issues, crop insurance or disaster relief, contracts with food processors, conflicts with neighbors, labor issues, farm business plans, wetland determinations, farm succession or estate issues and disputes affecting agricultural operations.

What states offer these services?

Below is a list of states that offer certified Agriculture Mediation Programs, with links to each website where applicable. Don’t see your state below? You can contact the national office by emailing certified.mediationprogram@wdc.usda.gov.

Alabama Agricultural Mediation Program

Arkansas Farm/Creditor Mediation Program

Arizona Agriculture Mediation Institute

Colorado Agricultural Mediation Program

Florida Agricultural Mediation Service

Hawaii Agricultural Mediation Program

Illinois Agricultural Mediation Program

Indiana Agricultural Mediation Program

Iowa Mediation Service (IMS)

Kansas Ag Mediation Services (KAMS)

Louisiana State Agricultural Mediation Program

Maine Agricultural Mediation Program – Volunteers of America

Massachusetts Agricultural Mediation Program

Michigan Agricultural Mediation Program

Minnesota Farmer/Lender Mediation Program

Mississippi Agricultural Mediation Program

Missouri Agricultural Mediation Services

Nebraska Farm Mediation Service

New Hampshire Agricultural Mediation Program

New Mexico Agricultural Mediation Program

New York State Agricultural Mediation Program

North Carolina Agricultural Mediation Program

North Dakota Mediation Service

Oklahoma Agriculture Mediation Program, Inc.

Oregon Farm Mediation Program

South Dakota Mediation and Ag Finance Counseling

State of New Jersey Board of Mediation

Texas Rural Mediation Services

The Community Mediation Center of Rhode Island

Utah Agricultural Mediation Program

Vermont Agricultural Mediation Program

Virginia Agricultural Mediation Program

Wisconsin Farm Mediation and Arbitration Program

Wyoming Ag & Natural Resource Mediation Program

Fulcrum Institute Dispute Resolution Clinic (ID, MT, WA)

Where can I find more information about mediation?

There are many resources available that offer a more in-depth look into how mediation can help, as well as advice on how to contact a local mediation provider.

• The USDA shares this overview of the Agriculture Mediation Program and provides contact information for each state entity.

• Mediate.com walks you through the history of mediation, what it is and how it can help.

• Farm Aid’s Farmer Resource Network includes information about each state’s mediation program and contact information.