WINDMILL COUNTRY: Farmers call crop insurance vital

During the recent U.S. House Committee on Agriculture field hearing in Lubbock, several West Texas farmers who testified expressed a need to strengthen federal crop insurance when the next farm bill is written. The ag committee had its seventh in a series of hearings on the Texas Tech University campus to review U.S. agriculture policy as the committee begins the process of writing the 2012 Farm Bill. Ronnie Holt, a cotton, corn and grain sorghum farmer from Muleshoe, serves as chairman of the Crop Insurance Professionals Association. In his testimony, Holt’s plea was to strengthen crop insurance, “a particularly timely request in the wake of the U.S. Department of Agriculture’s efforts to slash crop insurance investments by billions — a proposal that has been widely criticized by Congress and the agricultural community.”

Farmer-friendly SRA alternatives

In a letter to U.S. farm organizations, crop insurance agents released an alternative to the massive crop insurance funding cuts—ranging from $8.4 to $6.9 billion—recently proposed by the U.S. Department of Agriculture. “What has been missing from this negotiation is a focus on what benefits the farmer,” said Ronnie Holt, Chairman of the Crop Insurance Professionals Association (CIPA), the group of independent agents that wrote the letter.

Crop-insurance cuts would hit farmers

A little-known debate is going on in Washington, D.C., regarding crop insurance. Farmers across Iowa rely on their crop insurance policies to weather unexpected storms. Without such coverage, many of them would be hard pressed to secure the loans needed run their operations. Unfortunately, crop insurance is facing $7 billion in cuts that would take money and jobs directly out of thousands of Iowa communities; that could undermine insurance delivery to the men and women who grow America’s food, fiber, and fuel; and that in Washington would deal a blow to the agricultural budget as we head into the 2012 farm bill. These cuts would hit Iowans hard.

The search is on for better safety net in 2012 farm bill

House Agriculture Committee Chairman Collin Peterson (D-MN) wants to craft a better safety net for crop and livestock producers, but he faces an uphill battle on several fronts–cost, structure, actuarial soundness, delivery system, and producer attitudes, just to name a few. Still, he remains convinced that it might be possible to develop a more efficient system and perhaps even save some money in the process. During a series of farm bill field hearings this month, Peterson talked about developing a crop insurance system that covers all crops and suggested that one of the ways to do that is to eliminate spending on catastrophic (CAT) coverage and the noninsured crop assistance program (NAP). “We could pick up a lot of revenue by eliminating CAT coverage. It gives us extra money to fix the system,” Peterson explained.

The search is on for better safety net in 2012 farm bill

House Agriculture Committee Chairman Collin Peterson (D-MN) wants to craft a better safety net for crop and livestock producers, but he faces an uphill battle on several fronts–cost, structure, actuarial soundness, delivery system, and producer attitudes, just to name a few. Still, he remains convinced that it might be possible to develop a more efficient system and perhaps even save some money in the process. During a series of farm bill field hearings this month, Peterson talked about developing a crop insurance system that covers all crops and suggested that one of the ways to do that is to eliminate spending on catastrophic (CAT) coverage and the noninsured crop assistance program (NAP). “We could pick up a lot of revenue by eliminating CAT coverage. It gives us extra money to fix the system,” Peterson explained.

Ag. Commissioner Farmer Urges Farmers Affected By Flooding To Seek Relief

Agriculture Commissioner Richie Farmer said Thursday that Kentucky farmers may be able to utilize federal relief programs to get help for farm-related losses incurred since April 30 as a result of severe storms, flooding, mudslides, straight line winds and tornadoes. “Kentucky farmers have lost thousands of acres of crops, and some had farm equipment and fences damaged,” Farmer said. “I want them to know they are not alone. There are several programs available through the Farm Service Agency to assist them in their recovery.”

Severe weather emphasizes need for strong crop insurance program

It was a bit ironic that farmers from Plainview and the surrounding area saw storm clouds in their rearview mirrors as they drove to Lubbock for Monday’s House Ag Committee Field Hearing. Much of the concern expressed by those who gave testimony as the committee begins its work on the 2012 Farm Bill revolved around disaster relief and crop insurance. As if setting the stage for the discussion, a severe storm blew across the area, bringing high winds, hail and heavy rain. Area experts said it still is too early to know how much damage was caused by the storm, but there is no arguing that damage probably is out there.

Direct Aid Program For Farmers Opposed By Crop Insurers

Officials from the crop insurance industry are voicing opposition to a proposal by an Iowa State University professor that the current system be replaced with a direct subsidy program. In testimony Friday before the House Agriculture Committee at a hearing on the proposed 2012 farm bill, Professor Bruce Babcock proposed the direct subsidy program as less costly than the current system. The professor said he believes that providing revenue protection to farmers from systemic risk by using an area-based revenue plan would be far less expensive than the current system. But officials of the National Crop Insurance Services, Overland Park, Kan., the trade group for the private insurers that operate the program, criticized Professor Babcock’s proposal.

Ask the ACRE Specialists

I know academics don’t all have “skin” in the game like you real farmers, but most land grant university economists who’ve put the Average Crop Revenue Election program under the microscope conclude that you get a lot of protection for the money when you enroll. Giving up 20 percent of your direct payment (typically about $2 to $5 per acre for wheat, corn and soybean producers) buys you roughly $519 per acre in corn revenue protection in 2010 based on national averages, versus $339 per acre for the traditional Counter Cyclical Program. For soybeans it’s $368 under ACRE, vs. $230 under CCP. For wheat it’s $219 vs. $148. If you’re in a high yield state, you can up the ante.

Ask the ACRE Specialists

I know academics don’t all have “skin” in the game like you real farmers, but most land grant university economists who’ve put the Average Crop Revenue Election program under the microscope conclude that you get a lot of protection for the money when you enroll. Giving up 20 percent of your direct payment (typically about $2 to $5 per acre for wheat, corn and soybean producers) buys you roughly $519 per acre in corn revenue protection in 2010 based on national averages, versus $339 per acre for the traditional Counter Cyclical Program. For soybeans it’s $368 under ACRE, vs. $230 under CCP. For wheat it’s $219 vs. $148. If you’re in a high yield state, you can up the ante.

Hail Insurance Rates Down

As spring rolls on, the season of hail storms is fast approaching, and for farmers who plan to buy hail insurance this year, there`s good news. Farm Credit Services Wednesday held a hail seminar to stay up to date with the latest in hail insurance. The most notable change for this season is the price of insurance against hail.

Congress starts to work early on 2012 Farm Bill

Don’t get too comfortable with the policies and programs contained in the current federal farm bill: That was the message that the chairman of the House Agriculture Committee brought to farmers and ranchers attending a field hearing in Fresno last week. Rep. Collin Peterson, D-Minn., said farmers should expect “fundamental changes” in farm policy and said there will be “little room for the status quo” in the next farm bill, because of budgetary pressures and a public increasingly skeptical of traditional farm programs. “Don’t just get stuck in the idea that we have to have the same thing we’ve always had. Take a look at how we could do this better. Is there a way that we could have a more efficient, effective system, maybe with less money?” Peterson said. “That is why I wanted to start a year early, so that we could have extra time. I want you to get engaged to work with us, to see if there is a way we can make changes that work for agriculture.”

FSA: Report Prevented, Failed Acreage & Crop Losses

Prevented planting acreage, or acreage that could not be planted because of wet field conditions or other natural disaster, should be reported to your local Farm Service Agency office within 15 days of the final planting date of the crop. The agency says crops covered by crop insurance or the Non-insured Assistance Program and crops without insurance coverage need to be reported to the FSA or crop insurance agent to verify final planting dates for all crops since they vary among counties and crop types.

USDA willing to work with Congress on budget baseline

USDA officials indicated recently they would work with Congress to somehow preserve 2012 farm bill budget baseline that could potentially be lost through the renegotiation of the Standard Reinsurance Agreement. The comments, delivered to CongressDaily on the record by a USDA spokesperson and in less official terms to Hill leaders, came days after 10 commodity groups including the National Association of Wheat Growers wrote Secretary of Agriculture Tom Vilsack, expressing “grave concern” about baseline losses from savings achieved through the process, which was called for in the 2008 farm bill.

Will the next farm bill cause civil war in rural America?

The first hearings of the 2012 farm legislation were held last week, and as expected, they revealed the Barack Obama administration wishes to take money from farm programs and move it to other priorities. The Secretary of Agriculture pressed the issue with farm-state lawmakers by suggesting rural communities need more jobs and rural economic development funding should increase. That difference in priorities may set up a conflict in which direct farm payments are pitted against rural development with all casualties inflicted on the same people. I can trace the rural jobs philosophy back to Bill Clinton in the 1990s. During a news call with farm reporters he stated, “Farmers need jobs!” This was a shocking but accurate statement, as very few farm families drew all their income from the farming or ranching operation. It was still distasteful to think that a million-dollar investment would not provide enough income for a family to live and that one or both spouses had to find a place off the farm to work so they may have regular income and insurance.

Groups: Stop crop insurance negotiations

Farm groups have expressed concern that the Obama administration’s negotiations with crop insurance companies to cut their subsidies could produce budget savings that would reduce the amount of money available for the next farm bill, but a spokesman for Agriculture Secretary Tom Vilsack said April 12 the administration is willing to work with Congress to address those concerns. Reacting to a letter from a coalition of farm groups sent April 9 urging Vilsack to stop the negotiations and let Congress handle the issue, Justin De Jong, a Vilsack spokesman, said in an e-mail, “USDA remains open and willing to engage with the relevant congressional committees to achieve crop insurance reform in a way that addresses the baseline concerns expressed by the signatories of the letter.”

Work on new farm bill to begin shortly

The newest farm bill may be less than two years old – and is yet to even be fully implemented – but the House Agriculture Committee is already set to take on the next. During an April 16 press conference, Minnesota Rep. Collin Peterson, chairman of the House Agriculture Committee, said a handful of pressing issues had moved him to push those with an interest in the coming legislation to begin thinking about the “broad picture of how they perceive the current (farm) bill working, or not, trends they see in the future and things we should be considering. … One of the reasons to kick this off early is to get people thinking ahead of time.”

Work on new farm bill to begin shortly

The newest farm bill may be less than two years old – and is yet to even be fully implemented – but the House Agriculture Committee is already set to take on the next. During an April 16 press conference, Minnesota Rep. Collin Peterson, chairman of the House Agriculture Committee, said a handful of pressing issues had moved him to push those with an interest in the coming legislation to begin thinking about the “broad picture of how they perceive the current (farm) bill working, or not, trends they see in the future and things we should be considering. … One of the reasons to kick this off early is to get people thinking ahead of time.”

USDA To Work With Congress On Budget Baseline

USDA officials indicated last week they would work with Congress to somehow preserve 2012 Farm Bill budget baseline that could potentially be lost through the renegotiation of theStandard Reinsurance Agreement (SRA). The comments, delivered to CongressDaily on the record by a USDA spokesperson and in less official terms to Capitol Hill leaders, came days after 10 commodity groups, including the National Association of Wheat Growers(NAWG), wrote Secretary of Agriculture Tom Vilsack, expressing “grave concern” about baseline losses from savings achieved through the process, which was called for in the 2008 Farm Bill.

USDA To Work With Congress On Budget Baseline

USDA officials indicated last week they would work with Congress to somehow preserve 2012 Farm Bill budget baseline that could potentially be lost through the renegotiation of theStandard Reinsurance Agreement (SRA). The comments, delivered to CongressDaily on the record by a USDA spokesperson and in less official terms to Capitol Hill leaders, came days after 10 commodity groups, including the National Association of Wheat Growers(NAWG), wrote Secretary of Agriculture Tom Vilsack, expressing “grave concern” about baseline losses from savings achieved through the process, which was called for in the 2008 Farm Bill.

Policy specialists discuss farm bill

While the next U.S. farm bill is not scheduled for passage until 2012, the work of shaping the legislation already is under way on Capitol Hill. With that in mind, organizers of the 2010 Commodity Classic, held recently at Anaheim, Calif., brought together the lobbyists for the two largest general farm organizations to discuss current issues facing production agriculture, and offer a taste of the oncoming debate toward the 2012 farm bill. Chandler Goule, vice president of government relations for the National Farmers Union, and Mary Kay Thatcher, director of agriculture policy for the American Farm Bureau Federation, offered their viewpoints to High Plains Journal columnist Sara Wyant of Agri-Pulse Communications. The meeting room was packed–no doubt because board members from all four commodity groups that host the convention were about to have policy-shaping board meetings of their own following the session, and those leaders wanted to hear what the two general farm lobbyists had to say.

Rural Mutual: Crop Hail Insurance is Good Risk Management

With spring storm season underway, farmers may want to consider crop hail insurance as part of their risk management program, especially if they did not enroll in multi-peril crop insurance before the March 15 deadline. That’s according to Tom Thieding of Rural Mutual Insurance Company. He says each year, some farmers in the state are hit by localized storms that put their profit at risk. “For example, one storm front in July did an estimated $8-10 million in crop damage mainly in Grant and Lafayette Counties,” Thieding said. “Rural Mutual Insurance, the largest insurer of Wisconsin farms in state, paid $2.5 million in crop hail claims from that one storm.”

Iowa lawmakers agree on something

It’s not often that Iowa’s five U.S. House members find something they can agree on. But all five are telling Agriculture Secretary Tom Vilsack to back off of his proposed cuts to the crop insurance industry. Thanks to being the biggest producer of corn and its reliable rainfall, Iowa is the richest single state for the companies that handle the federally subsidized policies and the agents that sell the coverage. The administration is proposing to cut both the companies’ profits and the agent’s commissions to save $6.4 billion over the next 10 years. The USDA says the commissions, which average 21 percent  in Iowa, need to be brought closer to other regions.

Groups: Insurance Cuts Hurt Farm Bill Baseline

One clear benefit out of the crop-insurance negotiations is that everyone has got their letter-writing skills down. Last week, 30 senators wrote USDA cautioning against cuts to crop insurance in the Standard Reinsurance Agreement. Now, agricultural groups write another letter on the topic. The debate right now is just where will the axe fall in USDA’s third contract offer to the industry after crop insurers rejected the first two proposals, which would have cut $8.4 billion and $6.9 billion, respectively, out of administrative and operating costs, as well as underwriting gains, over 10 years. According to the farm groups, the Congressional Budget Office has penciled in a $3.9 billion savings over 10 years under the SRA. Groups express “grave concern” because the CBO doesn’t credit this savings to Congress. Instead, it credits the SRA.

Insurance Industry Questions Profit Numbers

The battle over future billions of dollars for crop insurance continued on Monday, with the crop-insurance industry questioning USDA’s profit analysis, saying USDA’s Risk Management Agency “understands too well that conclusions can’t be drawn from data representing such a narrow timeframe. A long-term view is essential when analyzing a program based on a private insurance model, where any year’s returns can vary due to weather or fluctuating crop prices. In fact, when discussing the rating of crop insurance policies in a recent interview, USDA’s Risk Management Agency Administrator William Murphy indicated that a short timeframe is inappropriate when making crop risk-based policy decisions, adding that the analytical horizon had to extend back to the middle 1970’s to ensure the policies were correct.”

USDA urged to reconsider crop insurance changes

U.S. Senate Agriculture, Nutrition and Forestry Committee Chairman Blanche Lincoln, D-Ark., and Ranking Member Saxby Chambliss, R-Ga., along with 28 U.S. senators, have expressed appreciation for the Risk Management Agency’s (RMA) willingness to reconsider its previous proposals as the Standard Reinsurance Agreement (SRA) renegotiation proceeds. Despite a modest reduction in the size of the proposed cuts between the first and second drafts, the senators expressed their concerns with RMA’s proposals that may undermine the crop insurance program, reduce the quality of service and availability of the program, and harm rural America through job loss. The senators also noted concern with RMA’s approach of proposing significant cuts to the program prior to the completion of a study of program delivery costs.

USDA urged to reconsider crop insurance changes

U.S. Senate Agriculture, Nutrition and Forestry Committee Chairman Blanche Lincoln, D-Ark., and Ranking Member Saxby Chambliss, R-Ga., along with 28 U.S. senators, have expressed appreciation for the Risk Management Agency’s (RMA) willingness to reconsider its previous proposals as the Standard Reinsurance Agreement (SRA) renegotiation proceeds. Despite a modest reduction in the size of the proposed cuts between the first and second drafts, the senators expressed their concerns with RMA’s proposals that may undermine the crop insurance program, reduce the quality of service and availability of the program, and harm rural America through job loss. The senators also noted concern with RMA’s approach of proposing significant cuts to the program prior to the completion of a study of program delivery costs.

RMA Considers Standard Reinsurance Agreement Cuts

USDA’s Risk Management Agency has reconsidered its previous proposals as the Standard Reinsurance Agreement renegotiation proceeds. But at least 30 U.S. Senators have voiced concern to the agency. In a letter they wrote that despite a modest reduction in the size of the proposed cuts between the first and second drafts, they believe RMA’s proposals may undermine the crop insurance program, reduce the quality of service and availability of the program, and harm rural America through job loss. The Senators said while they believe there may be some efficiencies to be identified through the SRArenegotiation process, they are concerned that the level of program cuts in the second draft will seriously and negatively affect several insurance companies’ ability to continue to offer much-needed risk management products in many areas of the country.

For the 2012 Farm Bill, crop insurance moves to center stage

For the last several years, U.S. wheat growers have been some of the staunchest supporters of direct payments, which are issued by USDA every year to producers with qualified base acres, regardless of what they planted or if they planted. Given the uncertainty of prices and production, it was one part of the federal farm program “safety net” that producers, and perhaps more importantly, their lenders, could count on year in and year out. But a year ago, I started asking wheat industry leaders about future farm program options and what they would want to see for a safety net in the future–especially if push comes to shove and there is a need to choose between some of the current options like direct payments, counter-cyclical payments and crop insurance. What if you had to pick just one? The answer was almost unanimous: Crop insurance won hands down.

NFU Delegates Set Federal Farm Program Priorities

National Farmers Union delegates have adopted a special order of business calling on Washington policy makers to consider the unique challenges facing rural America when debating policy solutions regarding the nation’s federal farm programs. “The 2008 Farm Bill provided a framework for building a strong agricultural economy by enacting a variety of initiatives that included funding crop insurance and permanent disaster-relief programs, maintaining emergency income supports for dairy farmers, establishing supply management plans for commodities such as sugar, and placing greater emphasis on effective conservation efforts,” said NFU President Roger Johnson.

Check crop insurance before abandoning wheat

Cold, wet conditions at planting reduced emergence. Cooler than normal temperatures throughout the fall and winter have reduced tillering. Yield potential for this year’s wheat crop has been reduced and some growers are considering abandoning their wheat and moving acreage to cotton or full-season soybeans.

Saying ‘no’ isn’t enough

There are times when just saying “no” isn’t enough. We hope that’s where the House Agriculture Committee is coming from. Last week the committee rejected a package of cost-saving policy changes proposed in the Obama administration budget. The changes would have modified the current Farm Bill. In fact, there’s a lot of merit to considering all of those ideas when hearings begin later this spring on a 2012 Farm Bill. In its budget message to Congress, the administration asked for fewer federal dollars to go toward underwriting crop insurance, for a new and lower cap on the maximum amount of payments awarded to an individual recipient and for a new way to calculate eligibility for many payments made through programs in the farm bill.

Saying ‘no’ isn’t enough

There are times when just saying “no” isn’t enough. We hope that’s where the House Agriculture Committee is coming from. Last week the committee rejected a package of cost-saving policy changes proposed in the Obama administration budget. The changes would have modified the current Farm Bill. In fact, there’s a lot of merit to considering all of those ideas when hearings begin later this spring on a 2012 Farm Bill. In its budget message to Congress, the administration asked for fewer federal dollars to go toward underwriting crop insurance, for a new and lower cap on the maximum amount of payments awarded to an individual recipient and for a new way to calculate eligibility for many payments made through programs in the farm bill.

Crop insurance coverage pays for Texas farmers

Hill County, Texas, farmer Albert Sulak admits that about 10 years ago he was a bit skeptical about the value of crop insurance. “I thought about insuring my vehicles, my house and I knew I needed health insurance,” he said. He decided to try crop insurance and still was not impressed for two or three years. “I didn’t need it,” Sulak said, during the Blackland Income Growth (BIG) conference in Waco. “Then I had two or three dry years.” And last spring made a believer out of him. “We had a late freeze that hurt our wheat crop. Crop insurance kept some of us in business after that loss. With the expenses involved in making a crop these days, we need crop insurance.”

Crop insurance coverage pays for Texas farmers

Hill County, Texas, farmer Albert Sulak admits that about 10 years ago he was a bit skeptical about the value of crop insurance. “I thought about insuring my vehicles, my house and I knew I needed health insurance,” he said. He decided to try crop insurance and still was not impressed for two or three years. “I didn’t need it,” Sulak said, during the Blackland Income Growth (BIG) conference in Waco. “Then I had two or three dry years.” And last spring made a believer out of him. “We had a late freeze that hurt our wheat crop. Crop insurance kept some of us in business after that loss. With the expenses involved in making a crop these days, we need crop insurance.”

USDA announces risk protection for specialty types of barley

Effective for the 2010 Crop Year, the Risk Management Agency (RMA) is offering insurance coverage based on contract prices for all practices of certain specialty types of barley (as reflected in the Special Provisions of Insurance). Specialty barley includes malting, waxy hulled, waxy hulless, and hulless types, available in all MPCI barley counties in Idaho, Oregon and Washington except the seven counties with a fall sales closing date for winter damage protection on winter barley. Those seven counties: Cassia, Nez Perce and Payette of Idaho; and Wasco and Umatilla of Oregon; and Klickitat and Yakima of Washington, will have this new coverage for specialty barley types for the 2011 crop year.

USDA announces risk protection for specialty types of barley

Effective for the 2010 Crop Year, the Risk Management Agency (RMA) is offering insurance coverage based on contract prices for all practices of certain specialty types of barley (as reflected in the Special Provisions of Insurance). Specialty barley includes malting, waxy hulled, waxy hulless, and hulless types, available in all MPCI barley counties in Idaho, Oregon and Washington except the seven counties with a fall sales closing date for winter damage protection on winter barley. Those seven counties: Cassia, Nez Perce and Payette of Idaho; and Wasco and Umatilla of Oregon; and Klickitat and Yakima of Washington, will have this new coverage for specialty barley types for the 2011 crop year.

USDA releases crop insurance agreement

USDA’s Risk Management Agency (RMA), which administers the Federal crop insurance program, has released a second draft of a proposed new Standard Reinsurance Agreement (SRA), which establishes the terms, roles, and responsibilities for both the USDA and insurance companies that participate in the Federal crop insurance program. The first draft was released Dec. 4, 2009. The new draft includes a series of significant changes, including many discussed during negotiations between the RMA and the participating crop insurance companies.

USDA releases crop insurance agreement

USDA’s Risk Management Agency (RMA), which administers the Federal crop insurance program, has released a second draft of a proposed new Standard Reinsurance Agreement (SRA), which establishes the terms, roles, and responsibilities for both the USDA and insurance companies that participate in the Federal crop insurance program. The first draft was released Dec. 4, 2009. The new draft includes a series of significant changes, including many discussed during negotiations between the RMA and the participating crop insurance companies.

Crop insurance carries the day for otherwise good crops

It wasn’t a bumper wheat crop, but the yields were respectable nonetheless. In some cases, in fact, they were darn good, beating out county averages. In something of an ironic twist, however, crop insurance was the icing on the cake. Bottom line, crop insurance is making up what farmers lost in the price of wheat, even though many of the costs associated with growing and harvesting the crop didn’t fall as far as prices did. Crop insurance payments for 2009, so far, are a relatively low $271.2 million statewide

Polk Farmers Get Federal Help for Freeze Damages

In the face of a ballooning federal deficit, Uncle Sam will come to the rescue of Florida farmers struggling to recover from last month’s brutal freezing weather. “This will certainly help,” said David Boozer, executive director of the Florida Tropical Fish Farm Association Inc. in Winter Haven, responding to the U.S. Department of Agriculture recently designating 60 Florida counties as federal disaster areas. The list includes Polk and every neighboring county. The declaration opens up several low-interest loan programs to freeze-stricken farmers in those counties. Tropical fish farmers centered in Hillsborough and Polk counties suffered the biggest losses from the record-breaking streak of cold weather that hit most of the state in the first two weeks of the year. Boozer estimated a 75 percent loss of Florida’s tropical fish stocks.

Polk Farmers Get Federal Help for Freeze Damages

In the face of a ballooning federal deficit, Uncle Sam will come to the rescue of Florida farmers struggling to recover from last month’s brutal freezing weather. “This will certainly help,” said David Boozer, executive director of the Florida Tropical Fish Farm Association Inc. in Winter Haven, responding to the U.S. Department of Agriculture recently designating 60 Florida counties as federal disaster areas. The list includes Polk and every neighboring county. The declaration opens up several low-interest loan programs to freeze-stricken farmers in those counties. Tropical fish farmers centered in Hillsborough and Polk counties suffered the biggest losses from the record-breaking streak of cold weather that hit most of the state in the first two weeks of the year. Boozer estimated a 75 percent loss of Florida’s tropical fish stocks.

Crop insurers resist USDA’s proposed cuts

Crop insurers say USDA’s proposed funding cuts to its crop-insurance program will cause their industry to downsize and shed jobs. USDA’s Risk Management Agency introduced a proposal in December for altering the agreement by which insurers deliver government-backed crop insurance. National Crop Insurance Services, an industry association, released its counter-proposal on Jan. 20, along with a critique of the cuts that RMA wants. “The industry is deeply concerned with RMA’s initial draft of the 2011 (Standard Reinsurance Agreement) and is proposing a number of changes to reduce the highly detrimental impacts of the RMA proposal,” the association said in a statement.

Crop insurers resist USDA’s proposed cuts

Crop insurers say USDA’s proposed funding cuts to its crop-insurance program will cause their industry to downsize and shed jobs. USDA’s Risk Management Agency introduced a proposal in December for altering the agreement by which insurers deliver government-backed crop insurance. National Crop Insurance Services, an industry association, released its counter-proposal on Jan. 20, along with a critique of the cuts that RMA wants. “The industry is deeply concerned with RMA’s initial draft of the 2011 (Standard Reinsurance Agreement) and is proposing a number of changes to reduce the highly detrimental impacts of the RMA proposal,” the association said in a statement.

Crop insurance cuts questioned

A proposed $4 billion cut over five years to the USDA crop-insurance program’s contracting agreement with private insurance companies has prompted 10 commodity organizations to express their concerns in writing to USDA Secretary Tom Vilsack. USDA’s crop-insurance contracting agreement is called the Standard Reinsurance Agreement. The draft reduction the USDA is considering would be in addition to last year’s cut of $6.4 billion over 10 years and another $1.7 billion in cuts to other components of the farm safety net, the commodity coalition said in its letter. The organizations urged Vilsack “to promulgate an [agreement] that does not undermine the important gains made in crop insurance since… 2000, but instead further strengthens available risk management protections and broadens meaningful access.”

The Farm Bill, A Spending “Freeze,” and the Federal Debt; Jobs Agenda and Climate Change; and Crop Insurance

news release issued on Monday by the National Farmers Union stated that, “Today, the National Farmers Union (NFU), in alliance with nine other national agricultural organizations, sent a letter to United States Department of Agriculture Secretary Tom Vilsack on the draft Standard Reinsurance Agreement (SRA). “‘The consideration of a $4 billion cut to the crop insurance program over five years on top of several substantial cuts made last year concerns both producers and businesses,’ said Roger Johnson, NFU president. “The letter highlights the importance of prioritizing the protection of farmers’ viability, emphasizing that changes made should not negatively impact farmers and ranchers’ ability to access insurance products that are vital to their operations.”

Congressional Documents and Publications

Michael Bennet, U.S. Senator for Colorado and member of the Senate Agriculture Committee, urged the U.S. Department of Agriculture (USDA) to proceed with caution on changes to the federal crop insurance program given their potential impact on the lives of Colorado’s farmers and ranchers. In a bipartisan letter to USDA’s Rural Management Agency (RMA) Administrator William Murphy, Bennet said that the federal crop insurance program is a vital resource for the growth and sustainability of Colorado’s and the country’s agricultural economy.

Private Crop Insurers Oppose Funding Cuts

The private crop insurance industry is blasting a proposed restructuring in the crop insurance program they say would cut $4 billion — or $800 million a year — over the next five years. The proposal, by the U.S. Department of Agriculture and the Risk Management Agency (RMA), which manages the federal insurance program, would also impose as much as $100 million in additional costs on private insurers, according to the National Crop Insurance Services, which represents the 15 insurers participating in the public-private cooperative program.

Insurers Slam Crop Insurance Program Cuts

Proposed cuts for the U.S. Agriculture Department’s subsidy to the crop insurance program are excessive and will likely lead to more consolidation in a shrinking private crop insurance industry, an insurers’ representative told the agency. Robert Parkerson, president of National Crop Insurance Services, which represents the carriers in talks with the Agriculture Department, made his comments as the NCIS submitted a counterproposal to the Agriculture Department this week. He said the original December proposal by the USDA/Risk Management Agency “would substantially change the structure of the crop insurance program.” Specifically, he said, it would result in an estimated reduction in funding of approximately $800 million per year over the next five years. This $4 billion cut would be in addition to the $6.4 billion cut mandated by the 2008 farm bill.

Old Man Winter puts squeeze on Florida orange growers

Florida growers have yet to determine how much damage their crops suffered from the cold snap that gripped most of the country the first week of January, but insurance experts say much of the expected losses will be covered. Freezing temperatures descended on South Florida and much of the Southeast for more than a week, causing anxiety for farmers, particularly orange growers. Some agricultural insurance experts said growers may have avoided large freeze losses, while growers’ groups still were assessing how much of this year’s orange crop will be lost.