The United States Department of Agriculture (USDA) is set to run a limited pilot quarantine insurance program in California this fall. The test program couldn’t be timelier given the concern many producers have over food safety legislation currently working through the Congress and this year’s tomato blight outbreak.As the North Bay Business Journal posted on July 20, 2009, starting this Fall California avocado and citrus growers may be entitled to certain loss claims that arise from the establishment of a mandated disease or pest control area for the 2011 crop year. The coverage will not account for losses due to the market, but will cover losses to due to the inability to move the crop.
The North Bay Business Journal quotes USDA spokesperson Shirley Pugh as stating, ‘“The coverage is meant to pay for situations where there is a mandated destruction of crops or if fruit rots either on the tree or in the truck bed because it can’t be moved.”’ The test is planned to run four years. Depending on the success, a new product for quarantine coverage could be established besides basic and catastrophic crop insurance coverage.
As the California Farmer reported, to be eligible a producer must follow best management practices during the time of the quarantine. The authority to test this program comes under the USDA’s Federal Crop Insurance Corporation’s ability to “test new insurance designs to evaluate whether a new risk management approach is suitable for the marketplace, and addresses the needs of producers of agricultural commodities.” To read the California Farmer story click here.
In related news, the controversy involving authority to quarantine crops has been a major issue in passage of the Food Safety Enhancement Act, H.R. 2749. To read a previous post on this issue click here. Additionally, for information on the tomato blight affecting the Northeast and Mid-Atlantic states click here.
Posted: 07/22/09
