pilot program

In the produce industry, food safety is front and center on everyone’s mind. The Food and Drug Administration (FDA) recently released some of the Food Safety Modernization Act (FSMA) final rules, and retailers are looking to buy from FSMA-compliant suppliers. If you’re a retailer or large produce buyer, there is exciting news about a program that verifies that suppliers are meeting your food safety requirements. After three years of successful trials, USDA recently previewed our plans to expand the GroupGap Pilot Program.

Many producers are aware of “Good Agricultural Practices,” or GAP audits. The USDA’s Agricultural Marketing Service (AMS) Specialty Crops Inspection Division (SCI) performs GAP audits, which are voluntary, third-party services that verify that farms are following industry-recognized food safety practices and recommendations from the Food and Drug Administration (FDA).

The USDA Foods program offers a wide variety of nutritious, 100 percent domestically produced food to help the nation’s schools feed our children and support U.S. agriculture. Each state participating in the National School Lunch Program annually receives a USDA Foods entitlement, which may be spent on any of the over 180 foods offered on the USDA Foods list.   Last year, the Food and Nutrition Service added an additional product to that list through a pilot program to offer Greek-style (i.e., high-protein yogurt) to schools in Arizona, Idaho, New York and Tennessee.

These states were able to order any quantity of Greek-style yogurt they chose for delivery from September to November 2013 within the balance of their USDA Foods entitlement. Not surprisingly, the overall response to the pilot was very positive. The states’ collective orders totaled 199,800 pounds of yogurt.

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.