Risk Management
Farmers can choose from various risk management policies to protect their operation from financial loss.
Crop Insurance and Whole Farm Revenue Protection
The USDA Risk Management Agency (RMA) offers a federally subsidized crop insurance program through private insurance companies. Crop insurance provides coverage against production losses due to drought, hail, frost, hurricanes, excessive moisture, fire, insects, plant disease and wildlife damage. It provides protection for up to 75% (85% for some crops) of the farmers actual yield history or against revenue loss. Individual crop insurance policies exist for annual, perennial, and livestock crops.
Noninsured Crop Disaster Assistance Program (NAP)
The USDA Farm Service Agency (FSA) offers NAP (Fact Sheet) to provide yield protection for crops ineligible for traditional crop insurance. NAP provides protection for up to 65% of the farmers actual yield history. The FSA also provides programs for livestock crops at NAP/ELAP Honey and Honeybee (Fact Sheet).
Risk Management Tools
- Farm Risk Plans — Resources, Tools and Calculators
- Risk Management Checklist (PDF from USDA RMA)
- Strengths, Weaknesses, Opportunities, and Threats Analysis Tool (PDF from USDA RMA)
Farmers are encouraged to visit the RMA website, and to contact their local crop insurance agent or Maine State Farm Service Agency office.
This material is based upon work supported by USDA/RMA under Award Number RMA24CPT0013927.
