Federal Crop Insurance for Shellfish Growers is On The Way

By shellfishNews
  • A proposal for Federal Crop Insurance for shellfish will be submitted to the USDA this fall
  • This insurance will offer more extensive coverage for shellfish growers
  • Crop insurance or NAP coverage is a vital part of receiving low-interest loans from ThreadCapital, a subsidiary of NC Rural Center, later this year

In October of this year, a proposal for federal crop insurance covering shellfish growers will be submitted to the USDA, the next step in what has been a multi-year process. This proposal is being designed by Crop Insurance Systems, Inc. with input from the FSA, NCSGA’s President Chris Matteo, and other shellfish growers along the east coast. Crop Insurance Systems has years of experience designing crop insurance for producers without coverage, as well as producers seeking to expand their existing coverage options.

Funding for this program came from the NC Department of Agriculture and the Maine Aquaculture Association, as well as the Federal Crop Insurance Corporation (FCIC). The North Carolina Coastal Federation highlighted the need for better grower risk management programs in a 2020 study of low-interest loans for shellfish growers in North Carolina. The development of this crop insurance is vital to the success of the low-interest loan program. for shellfish growers as well. Crop insurance or NAP coverage will be a requirement to receive any capital and potentially expand the state loan program in the future.

Currently, shellfish growers can only receive coverage through the Noninsured Crop Disaster Assistance Program (NAP) . This coverage has been beneficial, but it is limited. Payouts are capped at $300,000 and there are only a few buy-up coverage options available. NAP also lacks coverage for multiple loss events that may add up to the 50% crop loss required to receive assistance. The Federal Crop Insurance program being proposed will offer a wider range of coverage options, as well as higher amounts of coverage for crop loss. This program will also be offered through private insurance companies and backed by the Risk Management Agency (RMA). 

If any growers are interested in getting involved with this crop insurance proposal, there will be in-person and Zoom meetings in the future to discuss more details. 

By Charlotte Mesmer