Farmers who cultivate fresh fruits and vegetables are facing challenges with expensive and sometimes unavailable crop insurance due to the increasing impact of climate change, such as droughts and floods that can devastate their harvests. This situation has led many small farmers to question their future in agriculture.
Efforts to improve the accessibility and affordability of crop insurance are being discussed in Congress as part of the upcoming farm bill. However, conflicts between the interests of large and small farmers are complicating the debate.
The threat posed by climate change to farms is not theoretical. A study conducted by researchers at Stanford University in 2021 revealed that rising temperatures contributed to 19 percent of the $27 billion in crop insurance payouts between 1991 and 2017. The study also warned that further warming significantly raises the risk of future crop losses.
According to the National Sustainable Agriculture Coalition, about 85 percent of the nation’s commodity crops, including corn, soybeans, and wheat, are insured. In contrast, only around half of the land dedicated to specialty crops like strawberries, apples, and peaches was insured in 2022, as per federal data.
One example of a farmer struggling with the lack of insurance is Bernie Smiarowski, who farms potatoes and strawberries on fertile land in western Massachusetts. Despite the excellent soil quality, the proximity to the Connecticut River increases the risk of flooding, which has caused significant losses for Mr. Smiarowski in recent years.
Even in a typical year, his expenses per acre yield varying returns from 20 percent profit to breaking even. The cheapest insurance plans offered to him, at around $170 per acre annually, would only cover 60 percent of the wholesale price of his potatoes.
While he acknowledges the importance of insurance, Mr. Smiarowski is currently relying on hope for better outcomes.
Specialty farmers like Mr. Smiarowski face challenges in finding insurance agents willing to work with them. Most agents prefer insuring large tracts of commodity crops like corn and soybeans, which are more financially lucrative. The average specialty farm is smaller in size and may grow a variety of crops, requiring multiple insurance policies.
Companies offering crop insurance emphasize the need for payouts to align with premiums collected. Various products have been developed to address gaps in coverage, such as whole farm revenue protection, a comprehensive policy for farms growing diverse crops.
Advocates for small specialty farmers are pushing for policy changes in Washington to provide relief. The National Sustainable Agriculture Coalition has proposed easing access to whole farm revenue insurance and expanding disaster relief measures to support farmers affected by climate-related events.
Senator Debbie Stabenow from Michigan has introduced language in the farm bill to grant specialty farmers access to subsidized insurance policies and streamline the application process for products like whole farm revenue coverage. The debate over modifying the crop insurance program reflects tensions between commodity farmers and advocates for small specialty farmers.
The impasse in Congress has prompted some farmers to seek alternative forms of assistance. Following a devastating flood, Mr. Smiarowski and other affected farmers in Massachusetts appealed to Governor Maura Healey for disaster relief, which only covered a fraction of their losses. The temporary support has left Mr. Smiarowski and others reliant on favorable weather conditions for future success.
