Farm and Foreign Agricultural Services Program Announcement

USDA ANNOUNCES FIRST AQUATIC CROP INSURANCE PROGRAM

Contact: Eric Edgington (202) 690-2539
Eric.Edgington@rma.usda.gov

WASHINGTON, Aug 5, 1999 - Under Secretary for Farm and Foreign Agricultural Services August Schumacher, Jr., announced approval of USDA's first pilot aquatic crop insurance product, the Cultivated Clam Crop Insurance Program. Schumacher also serves as Chairman of the Federal Crop Insurance Corporation (FCIC) Board of Directors, which authorized the pilot program.

"These breakthrough programs can have a significant economic impact on our $138 million a year hard-shell clam industry," said Schumacher. "We are striving hard to make sure that all producers-regardless of their crop-- have access to affordable insurance protection. Today's action will help ensure that clam producers are able to secure the credit they need to build and expand their operations."

Clams were selected to be the first aquatic crop in part because of their resistance to disease and because the crop can be secured within boundaries.

The pilot program will provide coverage for clam producers who harvest hardshell clams. Covered counties include Brevard, Dixie, Indian River, and Levy in Florida; Barnstable, Bristol, Dukes, Nantucket, and Plymouth in Massachusetts; Charleston in South Carolina; and Accomack and Northampton in Virginia for the 2000 through 2002 crop years. The program will provide protection based on the inventory value of the clams. Covered losses will include oxygen depletion, disease, freeze, hurricane, salinity variations, tidal wave, storm surge, or windstorm. The sales closing date for the program is November 30, 1999, in all approved locations.