In accordance with GSH Para. 871D, AIPs must provide a copy of the following Organic Practices Guidelines to all insureds for whom the Organic Certified (OC) or Organic Transitional (OT) practices may apply.
These guidelines are provided to enable insureds to properly report planted or perennial acreage insured under an organic practice consistent with their crop insurance policy. It is important that these guidelines be utilized to document whether, at the time insurance attaches, insureds are aware of what is required to properly report and insure their crop under an organic practice. The guidelines, in their entirety, are substantive and are to be given to the insured.
1. Definitions
The following definitions are provided to facilitate a uniform understanding of the standards and guidelines for insuring acreage under the Organic Certified (OC) and Organic Transitional (OT) practices.
2. Requirements
A. For acreage to be insured under a certified organic or transitional practice:
1. The practice must be specified in the actuarial documents; or
2. Coverage is allowed by written agreement - see section 18 of the Common Crop Insurance Policy, Basic Provisions for requirements
In addition, you must have:
3. For certified organic acreage, a written certification (an organic certificate) in effect and directly received from a certifying agent indicating the name of the person certified, effective date of certification, certificate number, types of commodities certified, and name and address of the certifying agent (a certificate issued to a tenant may be used to qualify a landlord or other similar arrangement). A certificate issued from the National Organic Program's Organic INTEGRITY Database (or successor certificate reporting tool) is acceptable.
4. For transitional acreage, an organic system plan documenting the use of practices that would result in certified organic status and that includes the record information as described in (c) above, or written documentation from a certifying agent indicating that an organic system plan is in effect for the acreage.
Exception: If you do not meet the requirements in (a) or (b), you must provide documentation that you have requested, in writing, written certification for organic system plan by the Acreage Reporting Date (ARD).
Your certificate or plan must be in effect prior to the earlier of the end of the insurance period or when coverage ends as provided in section ll (b) of the Common Crop Insurance Policy, Basic Provisions.
Acreage will remain insured under the practice reported on the ARD. However, if you have a loss and do not have a certificate or plan in place at the time the claim is finalized, then your acreage will be insured under the practice for which it qualifies.
5. For certified organic and transitional acreage, records from the certifying agent showing the specific location of each field of certified organic, transitional, buffer zone, and acreage not maintained under organic management.
6. If you claim a loss on any acreage insured under an organic farming practice, you must provide the AIP with copies of the records required above.
3. Important Consideration for the Organic Practice in the Event of Damage or Loss
Coverage and Documentation:
1) You must provide the AIP with copies of the records required for certified organic and transitional organic acreage listed in accordance with your policy and Subpara. B requirements above.
2) The AIP will verify insurability, practice, and, if applicable:
- that your reported acreage agrees with the acreage shown on the certifier's records for certified acres and the organic system plan or written documentation issued by a certifier if you only have transitional acreage;
- the exact field locations of certified organic, transitional, and buffer zone acreage;
- the exact field location of acreage not maintained under organic management (i.e., crops grown under conventional or sustainable farming practices);
- rotation requirements, fertilization methods, insect, disease, and weed control methods, etc.; and
- whether you have followed good farming practices for the type/practice insured (see Subpara. D below).
3) In accordance with the Common Crop Insurance Policy, Basic Provisions, if you have a loss and do not have an organic certificate or an organic system plan in place at the time the claim is finalized, then the acreage will be insured under the practice for which it qualifies.
4) If acreage qualifies as certified organic or transitional by the ARD, and the certification is subsequently revoked or suspended by the certifying agent, or the certifying agent does not consider the acreage as transitional for the remainder of the crop year, the acreage will remain insured under the reported practice for which it qualified at the time the acreage was reported.
Uninsurable Causes of Loss:
1) failure to follow recognized Good Farming Practices (GFP) for the type/practice of the insured crop;
2) any loss due to failure to comply with the organic standards will be considered an uninsured cause of loss (COL);
3) contamination by application or drift of prohibited substances onto land on which crops are grown using organic farming practices will not be an insured peril on any certified organic, transitional, or buffer zone acreage; and
4) other causes of loss which are not covered as listed in the Common Crop Insurance Policy, Basic Provisions and Crop Provisions for your policy."
4. Good Farming Practices
The purpose of the Good Farming Practices (GFP) provisions is to ensure that your production methods do not adversely affect the quantity or quality of the production. This applies to any practice that could affect the amount and quality of the crop, from ground preparation through harvest. In the case of perennials, this applies to practices from post-harvest of the previous crop year through harvest of the current crop year that could affect the amount and quality of the crop. You are responsible for establishing that the farming practice in question constitutes a GFP.
All GFP evaluations, including decisions made by the AIP and determinations made by the Risk Management Agency (RMA), must be in accordance with the GFP provisions. Specifically, the production methods you use must:
- allow the insured crop to make normal progress toward maturity;
- produce at least the yield used to determine the production guarantee or amount of insurance, including any adjustments for late planted acreage;
- not reduce or adversely affect the yield; and
- be regarded as generally recognized GFP by organic agricultural experts for the area.
Approved Agricultural Experts include personnel whose research or occupation is related to the specific crop, and practice, in the region for which such expertise is sought, have demonstrated expertise in the production practice in question, and does not have a personal or financial interest in the insured or the crop.
Approved Agricultural Experts for the organic industry include, but are not limited to:
(a) the Appropriate Technology Transfer for Rural Areas National Sustainable Agriculture Information Service www.attra.ncat.org;
(b) the Sustainable Agriculture Research and Education organization, www.sare.org; or
(c) USDA Accredited Certifying Agents (ACA). These are third party agents who certify operations under USDA organic standards. A list of ACAs is available in the Certifier Locator on the Agricultural Marking Service website www.ams.usda.gov.
For additional information regarding Approved Agricultural Experts, contact your AIP.
If a person does not qualify as an expert, based on the information in Subpara. 21A of the GFP Handbook, persons certified through other programs may be recognized as agricultural experts by RMA if their research or occupation is related to the specific crop and practice, in the region for which such expertise is sought, and has demonstrated expertise in the production practice in question.
To obtain approval for such persons, contact RMA's Deputy Administrator for Insurance Services by email to rma.rmsd@usda.gov.5. Contract Pricing
The Contract Price Addendum (CPA) allows you to insure your crop at the contract price if you are a certified organic or transitional producer with a written contract from a buyer by the ARD.
This allows you to qualify for a federal crop insurance guarantee that more closely reflects the actual value of the certified organic or transitional crop. Where available, you have the choice to use either the contract price or the published RMA price as the crop insurance projected price or price election.
Availability - For a listing of crops see the Contract Price Eligibility by Commodity. For contract pricing availability for a particular commodity type or practice, please follow the prompts on RMA's Actuarial Information Browser and see the 'Prices' tab.
Information on how to apply the CPA is in (a)-(c) below:
(a) For contract pricing and availability for a particular commodity or practice, follow the prompts on RMA's Actuarial Information Browser. See the "Prices" tab. When a contract price code of "yes" exists on the Prices tab for the crop, type, and practice, you may use a contract price to determine your insurance guarantee.
(b) For commodities insured using the Commodity Exchange Price Provisions (CEPP), CPA information can be found in the CEPP.
(c) For commodities that do not use the CEPP to determine prices, CPA information can be found in the actuarial documents. Please ask your crop insurance agent for a copy of the actuarial documents for the insured crop.
If a commodity type or practice allows or requires the use of a contract price through the Crop Provisions or actuarial documents, the CPA is not applicable.
To be eligible for contract pricing, you must elect by the sales closing date and provide a copy of the contract to your crop insurance agent by the ARD. Unless changed by you, CPA coverage continues as your selection as long as your insurance policy remains active."