Securing vineyards with USDA and RMA crop insurance plans
Jason Smith, owner of Valley Farm Management in Gonzales, California, has been growing winegrapes for nearly 50 years.
As a second-generation farmer managing 3,000 acres, he relies on Federal crop insurance to mitigate risks from natural disasters and market fluctuations. “It was pretty much a no-brainer to have catastrophic insurance. It’s not going to cover your growing costs, but it’s also not going to be a total loss,” Smith said.
The USDA’s Risk Management Agency (RMA) offers Federal crop insurance policies to farmers across the U.S., enabling them to manage risk effectively.
Smith opts for higher coverage levels on his Pinot noir vineyards, as the grape’s susceptibility to heat makes it one of the riskiest and most valuable parts of his operation.
Natalie Collins, President of the California Association of Winegrape Growers, explains the economic importance of the winegrape industry, which generates $73 billion annually in California alone. She notes that over 70% of the state’s vineyards are enrolled in Federal crop insurance programs. “Jason Smith is a great advocate for the entire California winegrape industry,” Collins said.
Smith strongly encourages incorporating crop insurance into farm planning. “We’ve got one shot at it; one harvest. If you lose it, you lose a whole year. It is catastrophic if you don’t have help,” he shared. He credits USDA and RMA for helping farmers navigate tough times.
Explore RMA’s Beginners Guide to Crop Insurance or learn about specialized offerings like the Smoke Index endorsement to protect your farm against unforeseen challenges.