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Crop Insurance and Farm Credit Barriers to Sustainable Agriculture -Reply



Dear Holly,

You neglected to ask one very important question: Was this
one farmer in Maryland otherwise credit-worthy? Let's not
use a single anecdotal episode as the basis for a nationwide
program of re-education for bankers, etc. Those kinds of over-
blown responses by governement agencies are exactly the
ammunition Congress is looking for to justify zero-funding of
useful activities such as SARE and others. Please don't
misunderstand me, I fully support what you are trying to do. I
merely ask that you examine both your actions and your
words through the lens of those opposed to what you are
doing. Do not give them the bullets with which to shoot you!!
Keep up the good work!

Todd R. Johnson
Gainesville, FL

>>> Holly Hertel
<SIESNET.SIES1.HHERTEL@sies.wsc.ag.gov> 2 July 1996
 17:45 >>>
     I am currently trying to gather information for the USDA
on crop
insurance and farm credit barriers to the adoption of
sustainable
agriculture.  There is anecdotal evidence that farmers who
are trying to
use sustainable practices or organic agriculture are having
difficulties
receiving farm credit and crop insurance.  We have heard, in
particular,
>from  an organic grower in Maryland who has been denied
credit 6 of 7
times with farm credit and also has been routinely denied
crop
insurance. 
     We are trying to find out the scope of the problem.  Is it a
result of a
law or certain institutions?  For instance, would it help to
alleviate the
barrier if efforts were made to educate farm support industries
(including
private bankers, credit providers, and crop insurance
underwriters) on
the economics and practices of sustainable agriculture?  Is
the farm
credit and crop insurance barrier a problem only in certain
areas or
throughout the United States?  Is it a barrier only on certain
commodities
(i.e. cotton producers being required to spray in order to
qualify)?  Are
there any efforts underway conducting outreach or education
to
alleviate this problem?
     I am having trouble finding studies/literature documenting
the extent of
this problem.  I would appreciate any direction as to where I
can find
materials and any suggestions/comments on this issue.
          
          Thank you!
          Holly Hertel
          USDA
          Research, Education & Economics