Vermont farmers are facing growing challenges with crop insurance as unpredictable weather patterns continue to threaten agricultural operations. According to the Vermont Agency of Agriculture, roughly 70% of farms in the state carry no crop insurance, leaving many without financial protection when disaster strikes.
Limited Coverage and High Risks
Justin Rich of Burnt Rock Farm in Huntington lost $200,000 last year when floods devastated his riverside fields. Despite paying premiums to the federal government’s Noninsured Disaster Assistance Program (NAP), his payout amounted to just $3,000—less than two cents per dollar lost.
“It doesn’t work terribly well on smaller, medium-scale, diversified farms like ours,” Rich said.
NAP is designed for farmers who don’t qualify for federal subsidies on major crops such as corn, soybeans, or apples. Unlike traditional subsidized insurance plans offered through private providers, NAP is administered directly by the federal government.
For some farmers growing federally subsidized crops, the insurance proves more effective. Andrea Darrow, co-owner of Green Mountain Orchards in Putney, said subsidies for apples help make premiums affordable. When an unexpected frost in May 2023 destroyed 95% of her crop, the payout allowed the family-run orchard to recover and continue operating.
Most Vermont Farms Remain Uninsured
Despite such cases, the majority of Vermont farms remain uninsured. Rich noted he was surprised the figure wasn’t even higher, citing the state’s agricultural profile, which largely lacks conventional grain crops.
Even some dairy farmers who grow silage corn for feed choose to forgo insurance. Earl Ransom of Rockbottom Farm in Strafford called crop insurance a “scam” and relies on self-built resiliency measures, including avoiding riverbottom land and producing surplus feed.
“The only ideal form of insurance at this stage is to have a personal buffer of money, land, and crop yield,” Ransom said. For many, however, that’s not a realistic option.
Administrative Burdens and Pricing Issues
Vermont Agency of Agriculture Chief Operating Officer Nicole Dubuque highlighted long-standing concerns about the lack of affordable, accessible insurance options for small-scale growers.
Farmers also face high premiums and complex federal payout calculations. Prices are often based on national averages, which can undercut Vermont growers. When Rich lost his sweet potato crop last summer, he was compensated based on a national average price far lower than the cost of production in the state.
Rich also lost 34.5% of his potato crop, but because the payout threshold was 35%, he did not qualify for assistance despite paying higher premiums for extra coverage.
The administrative process itself can also be burdensome, with months-long wait times for payouts. Farmers who sell primarily through farm stands and informal markets often struggle to provide the required meticulous records.
“It is not a small amount of paperwork,” Rich said.
Alternative Support From the State
Hank Bissell of Lewis Creek Farm in Starksboro said he stopped pursuing federal insurance decades ago, calling it financially unhelpful. When floods hit in 2023 and 2024, he incurred $120,000 in uninsured losses.
Both Bissell and Rich turned to the Business Emergency Gap Assistance Program (BEGAP), administered by the state’s Agency of Commerce. BEGAP, though not an agriculture-specific program, provided timely relief.
“Very fast, very easy to apply for, and extremely useful for those of us affected,” Rich said. Bissell was able to recover 30% of his losses, preventing what could have been a financial disaster.
Legislative Efforts for Future Support
State lawmakers introduced a bill in the last legislative session to create a Farm Security Special Fund specifically for farmers. Sen. Ruth Hardy, D-Addison, cited the difficulties small farms face accessing existing aid and the impact of shifting climate patterns.
“Having a fund that is designed specifically for farmers is an important tool to keep local agriculture viable in our state,” Hardy said.
The bill stalled in the Appropriations Committee but may be revisited in a future session. Dubuque said expanded funding would help, though full recovery after a disaster would require significant resources.
Federal Alternatives and New Aid
Tom Zacharias, president of National Crop Insurance Services, suggested farmers explore other federal insurance options such as the Micro Farm Program and Whole-Farm Revenue Protection. However, a USDA report showed no payouts in Vermont for either program during the 2024 crop year, and many farmers viewed them as prohibitively expensive.
Meanwhile, U.S. Sen. Peter Welch, D-Vt., announced that Vermont farmers affected by natural disasters in 2023 and 2024 are eligible for expedited assistance through the USDA Supplemental Disaster Relief Program.
Over $16 billion from the 2025 American Relief Act will be distributed nationwide, but only farmers who previously participated in NAP or subsidized crop insurance in 2023 and 2024 can apply.
The Central Role of Small Farms
Dubuque emphasized the economic and cultural importance of Vermont’s small-scale farms, noting their contributions to both food production and tourism.
“Small farms in this state are so incredibly important to our economy,” she said.
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