The United States
Department of Agriculture’s Federal Crop Insurance Corporation
recently approved a pilot insurance program that will offer
group risk insurance coverage to Louisiana oyster growers
for oyster crop losses due to natural disasters.
This is the first
time any kind of insurance has been offered to Louisiana oyster
growers. After Hurricanes Katrina and Rita, members of the
Louisiana Oyster Task Force saw how necessary it was to have
the same kind of assistance that farmers of other crops receive.
“Many people
don’t think of oysters as a farmed product, but they
are harvested much like other crops, they just happen to be
under water,” said Al Sunseri, chairman of the Louisiana
Oyster Task Force. “We want to thank Congress for supporting
this proposal and the Federal Crop Insurance Board for supporting
this risk management plan to assist us in recovering from
catastrophic events.”
Under the pilot
program, oyster producers will be able to purchase a guarantee
that the oyster harvest from a basin will be at least 90 percent
of the expected oyster harvest. Growers can select a guarantee
between 65-90 percent of the basin average, based on the proportion
that they contribute to the average basin harvest.
Rob Cerda, president
of Crop Insurance Systems, Inc., has been a consultant to
the oyster industry and helped develop this plan that will
provide the oyster industry financial support to aid in recovery
from devastating losses.
“Crop insurance
coverage can return an insured grower to the financial position
they may have expected at the start of the crop season despite
severe crop loss,” said Cerda. We think this program
will be a significant step forward in helping them manage
their risk of crop loss.”
For more
information about Louisiana oysters, visit www.LouisianaOysters.org.
