Case announces new federally-subsidized crop insurance for bananas, papayas, coffee

Case announces new federally-subsidized crop insurance for bananas, papayas, coffee

Honolulu, Hawaii - Congressman Ed Case today said local banana, papaya and coffee growers—three key Hawaii specialty crops—will be eligible next year for the first time to receive federally-subsidized crop insurance that will provide coverage for damage resulting from natural disasters and other threats.

"One of my legislative priorities in Congress has been to assure that our Hawaii's agriculture industry, particularly our specialty crops, is getting our fair share of federal support so local farmers can compete more effectively in an expanding, global marketplace," said Case, Ranking Member of the House Agriculture Committee's Subcommittee on Livestock and Horticulture. "To that end, we've just received this very encouraging news at a critical time when our producers are facing difficult situations with poor weather and diseases such as the Banana Bunchy Top Virus and the Papaya Ring Spot Virus."

The U.S. Department of Agriculture's Risk Management Agency (RMA) has approved federally-subsidized crop insurance for banana, papaya, and coffee in Hawaii so that both the fruit and trees can be insured. These long sought after products were recently approved by the Federal Crop Insurance Corporation's Board of Directors.

"The new coverage includes multiple threats to those crops, including wind, hurricanes, drought, floods, diseases and, in some cases, low prices," said Case. "Federal approval of crop insurance for these specialty crops represents a significant step forward for local agriculture because Hawaii crops are finally getting much needed insurance coverage, which has been available for decades to many other crops nationwide. While I'm delighted with this development, I'm equally disappointed that more of Hawaii's crops are not afforded such protection and I will continue to pursue crop insurance for these Hawaii products as well.""

The crop insurance is the result of nearly four years of research and development sponsored by the RMA and performed by AgriLogic, Inc., a company that provides risk analysis products and services to the food industry.

All islands in the state will be eligible for the insurance which will become available in June 2006 for the three specialty crops. The coverage will insure the tree or plant itself as well as the fruit that the plant produces. At present, the only federally-approved crop insurance programs in Hawaii cover macadamia nuts and nursery products.

Case has been advocating for greater federal support of Hawaii's specialty crops. Last July, he introduced a bill to amend the Federal Crop Insurance Act to expand the Agricultural Management

Assistance Program to include the State of Hawaii. This program was established in 2000 to benefit states that are underserved by federal crop insurance programs. The program provides cost-sharing assistance under contracts of three to ten years in fifteen specified states to help producers construct or improve water management and irrigation structures, plant trees, control soil erosion and pests, practice organic farming, develop value-added processing, and enter into contracts to reduce production, price, or revenue risk.

The 2002 Farm Bill authorized annual funding of $20 million from FY2003 through FY2007. In FY2004, there were 723 active contracts and a total of $10.2 million was spent.

"The bill I've introduced and the newly-approved crop insurance program are necessary in order to make Hawaii's diverse and unique farm crops across the state more competitive in local, national, and international markets," said Case.

"Virtually all of Hawaii's crops are part of what are commonly referred to in national agricultural circles as ‘specialty crops' to distinguish them from the so-called ‘program crops' such as corn, wheat, soybeans, and sorghum which have been the main focus of federal support. Additionally, what's good for Hawaii will be good for our nation because of a growing trend of agricultural diversification across the country.

"At the same time, our overall efforts for American agriculture are facing severe challenges, as the Administration and others advocate large additional funding reductions, even though federal agricultural assistance has already been among the hardest-hit area under ongoing budget restrictions. I'll continue to work with my colleagues on the House Agriculture Committee to ensure that we maintain the gains we've made and provide fair and equitable federal support of our nation's and our Hawaii's agriculture."

http://wwwc.house.gov/case/press_releases/2005/2005-63-Crop%20Insurance.html