Home Industry News Ag Legislation Vine Replacement Insurance Program Being Developed For Us Grape And Wine Industries

Vine Replacement Insurance Program Being Developed For Us Grape And Wine Industries

On November 19, 2020, the Federal Crop Insurance Corporation (FCIC) Board of Directors approved AgriLogic Consulting, LLC to develop a federally subsidized vine replacement insurance program for the United States grape and wine industries.

AgriLogic had been previously contacted by various industry representatives from several key production regions requesting a product to protect producers against perils that can destroy vines, namely freeze and fire. Subsequent research and industry discussions resulted in a proposal to develop a vine replacement product for the following states: California, Idaho, Michigan, New York, Oregon, Pennsylvania, Texas, and Washington.

The list of perils to be included are freeze, hail, flooding, volcanic eruption, fire, and failure of the irrigation water supply (if caused by an unavoidable naturally occurring event during the insurance period). Claims will be limited to those resulting in complete destruction or death of the vine. Losses due to partial damage will not be paid. Wine, table, and juice grape varieties will be in included.

While both programs are federally subsidized and administered by the USDA Risk Management Agency (RMA), the vine replacement program is different and separate from the existing Grape and Table Grape Crop Insurance Programs, which cover losses related to the production of the fruit itself. Producers will be able to purchase the vine insurance program through existing crop insurance agents once the program becomes available, which is currently targeted for the 2023 crop year.

Over the next several months, AgriLogic will publicize and host virtual listening sessions to obtain producer feedback on program components. Industry involvement is imperative to a successful program development and we value the input of all interested parties. Dates, times, and participation information will be distributed through various industry organizations, newsletters, and other resources.

AgriLogic has an extensive history and proven experience related to researching and subsequently developing insurance programs for various crops nationwide. Over the course of the last 20 years, AgriLogic has completed more than 70 projects for the RMA. These projects have included feasibility studies, the development of new products, revisions to existing products, and reviews of products developed by both RMA and private organizations. Please direct all questions about this Vine Replacement Program to ngueck@agrilogic.com and learn more about AgriLogic’s current and past projects at www.agrilogicconsulting.com

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