Also, we are trying to understand how we can provide crop insurance to organic farmers. Right now our actuarial systems (the prices and yields we offer for coverage) are set up based on conventional farming systems, example, we insure rice --but if someone wants organic rice insurance then we may have a problem or barrier providing coverage because we do not understand the difference-from a risk standpoint. We know that organic yields are lower, but the price the grower receives is much higher than what we offer for the conventionallly grown crop.
Any thoughts on practices, number of years records organic producers may have available, etc.
Also if someone is going from conventional to organic (in transition) and they have 3 years of records from conventional practices, and one from organic, we don't feel we can give that farmer the average of the four years. We are looking for a system to recognize the differences in the organic vs. conventional farming practices.
Thank you.
Sharon H.
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