News & Events

USDA-RMA Reports on Feasibility of Crop Insurance for Various Aquaculture Sectors

Apr 2, 2013

** National Aquaculture Association (http://thenaa.net), April 2, 2013

USDA-RMA Feasibility Research Reports on Feasibility of Crop Insurance for Various Aquaculture Sectors - bivalves, freshwater and saltwater

There are numerous inquiries each year on the status of federal crop insurance for aquaculture businesses. The 2008 Farm Bill contained the provision below calling for research studies on specific sectors and species.  See the below links to access each of the three reports in addition to an evaluation report on a cultivated clam pilot program. These reports provide some insights on the challenges and issues associated with federal crop insurance and aquaculture.

> Provision from the Food, Conservation and Energy Act of 2008 (2008 Farm
> Bill):
>
> ‘‘(12) AQUACULTURE INSURANCE POLICY.—
> ‘‘(A) DEFINITION OF AQUACULTURE.—In this subsection:‘‘(i) IN
> GENERAL.—The term ‘aquaculture’ means
> the propagation and rearing of aquatic species in controlled or selected
> environments, including shellfish
> cultivation on grants or leased bottom and ocean ranching.
> ‘‘(ii) EXCLUSION.—The term ‘aquaculture’ does not include the
> private ocean ranching of Pacific salmon
> for profit in any State in which private ocean ranching of Pacific salmon is
> prohibited by any law (including
> regulations).
> ‘‘(B) AUTHORITY.—
> ‘‘(i) IN GENERAL.—As soon as practicable after the date of enactment
> of the Food, Conservation, and Energy
> Act of 2008, the Corporation shall offer to enter into 3 or more contracts
> with qualified entities to carry
> out research and development regarding a policy to insure the production of
> aquacultural species in aquaculture
> operations.
>
> ‘‘(ii) BIVALVE SPECIES.—At least 1 of the contracts described in
> clause (i) shall address insurance of bivalve
> species, including—
> ‘‘(I) American oysters (crassostrea virginica);
> ‘‘(II) hard clams (mercenaria mercenaria);
> ‘‘(III) Pacific oysters (crassostrea gigas);
> ‘‘(IV) Manila clams (tapes phillipinnarium); or
> ‘‘(V) blue mussels (mytilus edulis).
> ‘‘(iii) FRESHWATER SPECIES.—At least 1 of the contracts described in
> clause (i) shall address insurance of
> freshwater species, including—
> ‘‘(I) catfish (icataluridae);
> ‘‘(II) rainbow trout (oncorhynchus mykiss);
> ‘‘(III) largemouth bass (micropterus
> salmoides);
> ‘‘(IV) striped bass (morone saxatilis);
> ‘‘(V) bream (abramis brama);
> ‘‘(VI) shrimp (penaeus); or
> ‘‘(VII) tilapia (oreochromis niloticus).
> ‘‘(iv) SALTWATER SPECIES.—At least 1 of the contracts described in
> clause (i) shall address insurance of
> saltwater species, including—
> ‘‘(I) Atlantic salmon (salmo salar); or
> ‘‘(II) shrimp (penaeus).
> ‘‘(C) RESEARCH AND DEVELOPMENT.—Research and development described in
> subparagraph (B) shall evaluate the
> effectiveness of policies and plans of insurance for the production of
> aquacultural species in aquaculture operations,
> including policies and plans of insurance that—
> ‘‘(i) are based on market prices and yields;
> ‘‘(ii) to the extent that insufficient data exist to develop a policy
> based on market prices and yields,
> evaluate how best to incorporate insuring of production of aquacultural
> species in aquaculture operations into
> existing policies covering adjusted gross revenue; and ‘‘(iii) provide
> protection for production or revenue
> losses, or both.
>
> Go to http://www.rma.usda.gov/pubs/ for a listing of completed RMA reports
> and specifically to the links below to access each one related to
> aquaculture.
>
> Risk Management Reports:
> * Feasibility Research Report for Insuring Aquaculture Bivalve Species
> (http://www.rma.usda.gov/pubs/2012/bivalvespecies.pdf) . Nov 2011.
> * Feasibility of Crop Insurance for Freshwater Aquaculture
> (http://www.rma.usda.gov/pubs/2012/freshwateraquaculture.pdf) . Sep 2011.
> * Feasibility of Crop Insurance for Saltwater Aquaculture
> (http://www.rma.usda.gov/pubs/2012/saltwateraquaculture.pdf) . Sep 2011.
> * Cultivated Clam Pilot Evaluation Final Report
> (http://www.rma.usda.gov/pubs/2011/cultivatedclam.pdf) . Jun 2011.
>