cucumbers

The Census of Agriculture is the most complete account of U.S. farms and ranches and the people who operate them. Every Thursday USDA’s National Agricultural Statistics Service will highlight new Census data and the power of the information to shape the future of American agriculture.

When you think of Michigan, you may think of Detroit and the car industry, however our agriculture industry is also critical to our state’s economy. Agriculture’s economic impact on the Michigan economy recently surpassed the $100 billion mark. Traveling through Michigan, you can easily see just how diverse agriculture in our state truly is. In the latest Census of Agriculture, Michigan farmers reported growing many various types of fruits, vegetable and livestock commodities. In fact Michigan produces more than 300 different commodities.

While the Great Lakes provide our crop growers with an abundance of fertile lands and water, it is our dairy farmers that produce our most valuable commodity. According to the Census, in 2012, Michigan dairy farmers sold more than $1.5 billion worth of milk from their cows. And despite the decrease in the number of such farms, the number of dairy cows in Michigan keeps growing. As of 2012, there were more than 376,000 milk cows on 2,409 of our dairy farms.

As consumer demand for fresh fruit and vegetables increases, so do the production risks for the nation’s farmers as they grow these crops.  To meet this challenge, the Risk Management Agency (RMA) pays close attention to the changing agriculture sector to ensure that crop insurance is made available where feasible.

A tremendous amount of work goes into offering a new insurance product, making sure that the product provides the coverage needed by growers at a reasonable premium without distorting the market or affecting a grower’s management decisions for the crop. New insurance products must have written policy, underwriting and loss procedures, as well as an actuarially-sound premium rate. The ability to innovate with new and expanded insurance offerings to reflect modern and changing farming practices is central to how the Federal Crop Insurance Program works.