One of the benefits of raising organic crops is the ability to sell them for a premium price. In spring 2022, the price for a bushel of conventional soybeans was $14.33, while a bushel of certified organic soybeans sold for $27.41 (see table below). Federal crop insurance plans account for this by offering adjusted prices for certified organic products. However, another coverage option may offer even better protection: the Contract Price Option.
This option allows certified organic or transitional crop producers with written contracts from buyers to insure their crops based on their contracted price rather than the price set by the U.S. Department of Agriculture’s Risk Management Agency (RMA), the agency that administers federal crop insurance.
The Contract Price Option can be added to a crop insurance policy to help a producer better cover a crop’s value.
