Diversified farming: The practice of producing a variety of crops or animals, or both, on one farm, as distinguished from specializing in a single commodity.
Diversified farming boasts many benefits, and now, courtesy of the recently passed 2014 Farm Bill, another perk is in the works.
Next year, thousands of specialty crop, organic, and diversified crop producers will receive a new insurance option in lieu of a lower level type of umbrella coverage. The new risk management option, Whole-Farm Revenue Protection, extends coverage, insuring up to 85% of a farm’s total average yearly revenue for crops and livestock, and boasts bigger premium discounts as diversity of production expands. What’s more, Whole-Farm insurance allows farmers to insure all crops on their farm simultaneously, rather than insuring single commodities individually, providing farmers more flexibility and promoting the practice of crop diversity.
Available on a start-up basis to begin, the coverage will extend to counties in the Northwest, Rocky Mountains, Great Lakes, and East Coast regions. To qualify, farmers must provide up to 5 years of tax records, revealing farm costs and sales.
It’s expected that this option will only continue to expand in availability over the next several years as farm groups across the nation press the USDA for nationwide coverage.
Interested in boosting your farm’s crop diversity? Our AgAmerica farm loans cover all facets of farming, including the practice of diversification. When it’s time introduce new crops or livestock to your farm, these ag loans are a great choice. Plus, interest rates for these loans often beat all other ag loan programs. Call on our ag lending experts for further assistance!