Crop Insurance Basics: Historic Drought Loss

It has been an exceptionally difficult crop year for many of America’s farmers and ranchers as drought conditions in the West and northern Plains have distressed crops and grazing lands. Approximately 210 million acres of crops are experiencing some level of drought conditions.

Millions of farmers trust crop insurance to help manage their risks, including drought, and farmers have already spoken out about the importance of the farm safety net and crop insurance during years like these.

“Many of our risk management programs, like crop insurance, will be vitally important this year for those producers,” National Association of Wheat Growers Executive Director Chandler Goule said after touring drought-stricken wheat fields in the Dakotas and Minnesota. “Most of the producers we’ve talked to…I’m not going to say they were optimistic but very thankful they had crop insurance programs.”

While the full extent of drought damage is yet to be revealed, crop insurers are already engaged with farmers and ranchers on the ground to help them navigate this historic drought. Currently, more than 90 percent of America’s row crop farmland is protected by crop insurance, and we stand at the ready to keep America growing – no matter the size or scope of the disaster.

So, how does crop insurance respond to a historic drought? We don’t need to look very far back in the history books to find the answer.

In 2012, drought gripped America’s heartland, leaving most of the country reeling from at least some level of drought. It was one of the worst disasters to hit American agriculture in decades.

“Going out in the fields… is a thoroughly depressing experience,” Illinois farmer David Andris told National Crop Insurance Services at the time. “If we didn’t have crop insurance…this year might be the end of it for me.”

The decrease in corn production per acre in 2012 was the largest caused by a drought since 1988.

Farmer Robert Geddes emphasized the importance of having crop insurance during 2012 for the “nasty years like this.” Growers in his area had invested a lot into growing the best crop possible, only to see it lost to drought. If farmers didn’t have the safety net provided by crop insurance, “they’d truly be hurting.”

Thankfully, crop insurance performed extremely well. It quickly and efficiently delivered aid to rural America – exactly as Congress designed.

The public-private partnership of crop insurance meant that farmers weren’t left waiting for years for some form of ad-hoc disaster assistance. Private-sector insurance adjusters quickly assessed damage in the field and crop insurance companies worked swiftly to finalize more than one million claims. This gave farmers the certainty to plan for the next planting season.

Not only did crop insurance help farmers and ranchers weather the drought of 2012, ensuring the security of our food and fiber supply, but crop insurance had a positive impact throughout the rural economy.

An economic study commissioned by Farm Credit Services of America found that in Iowa, Nebraska, South Dakota, and Wyoming alone, crop insurance indemnities from the 2012 drought generated enough off-farm income to save 20,900 non-farming jobs.

Our thoughts are with the farmers and ranchers who are currently dealing with this devastating drought. But history shows us that we will face this challenge together – just as we have before.

Responding to Drought: Crop Insurance’s Proven Track Record

As America’s farmers and ranchers face severe drought conditions, we’ve been reflecting on the historic drought that swept across American farmland in 2012. That disaster showed just how efficiently the Federal crop insurance program can deliver aid when everything is on the line for America’s farmers.

Former USDA Under Secretary Michael Scuse commended the crop insurance industry for its response to the 2012 drought saying, “To this day, I have yet to have a single producer call me with a complaint about crop insurance. That is a testament to just how well your agents, your adjusters, the companies, and the Risk Management Agency (RMA) worked together in one of the worst droughts in the history of this nation.”

Crop insurance stepped up then to provide timely claims service and indemnity payments to keep America growing, and we are once again ready to provide critical relief to our producers.

Over the past decade, members of Congress from both sides of the aisle have continued to strengthen the successful public-private partnership that defines the Federal crop insurance program. Farmers have come to count on the efficiency of the private sector, and crop insurance companies are continually making additional investments to process claims quickly and accurately.

As a result, more and more farmers have turned to crop insurance to help manage their risks. As the cornerstone of the farm safety net, crop insurance currently insures more than 440 million acres of American farmland. That’s over 157 million more acres protected by crop insurance when compared to the acres covered during the 2012 drought.

However, each of these acres is not affected equally by current drought conditions. While the 2012 drought was widespread across much of the country – affecting approximately 85 percent of corn production – the current drought is much more severe in the West and northern Plains. Fifteen states in the West, High Plains, and portions of the Midwest are experiencing extreme and/or exceptional drought.

“This is definitely the worst crop year we have had since we started farming 35 years ago,” Washington wheat farmer Marci Green recently told ABC News. “Years like this are the reason we have crop insurance.”

No matter where the damage happens, private-sector crop insurance companies are ready to deploy loss adjustment teams, determine losses, and quickly pay claims to growers. In fact, crop insurance adjusters have already been out in the fields for months, appraising crops and educating farmers on the specifics of their individual crop insurance policy.

One of the key strengths of crop insurance is that farmers share in the risk – and the cost – of crop insurance. That means American taxpayers will not be left 100 percent on the hook for the cost of the drought.

Farmers pay insurance premiums to purchase coverage before disaster strikes and, like other lines of insurance, shoulder a portion of losses through their deductible. Private crop insurance companies take on losses as well.

The Federal government plays a role, too. In 2012, the government fulfilled its role as a reinsurer under the terms of the Standard Reinsurance Agreement and stepped in to share in the severe and catastrophic losses.

Each component of the Federal crop insurance program worked together in 2012 to help American agriculture survive in the face of overwhelming disaster.

Now, as America’s farmers and ranchers face yet another historic drought, crop insurance is again working to help farmers on the road to recovery. The Federal crop insurance program has a proven track record of delivering for farmers and ranchers in challenging times, and we will continue to meet that call.

Members of Congress Share Support for Crop Insurance

Congress recently heard loud and clear from America’s farmers that they must do no harm to crop insurance as they consider programs to support rural America.

Farmers representing a diverse range of commodities testified last week before a House Agriculture Subcommittee hearing called by Subcommittee Chairwoman Cheri Bustos (D-Ill.) to share their experience with the farm safety net.

“We’ve heard time and again how critical crop insurance is as a risk management tool for farmers,” Chairwoman Bustos said in her opening remarks.

Growers spoke to the effectiveness of the crop insurance program and its irreplaceable role in the farm safety net. Each of the farmers had been personally affected by either weather disasters, market volatility, or the pandemic. Sometimes even all three.

No matter the challenge, crop insurance was there to help them manage their risks and keep growing another season.

Their messages of support for crop insurance were quickly echoed by several of the members of Congress in attendance, including Congressman GT Thompson (R-Pa.), Ranking Member of the full committee:

“Rather than wait for an act of Congress, farmers need reliable assistance that only a standing program can provide and there is no better example of a program that responds quickly when needed than crop insurance. Above all else, we must first do no harm to the existing safety net.”

Several farmers underscored Congressman Thompson’s message on the timeliness of crop insurance assistance. The crop insurance program utilizes a unique public-private partnership to deliver indemnity checks in just days or weeks – not months, or even years, as can be the case when relying on ad hoc disaster assistance.

Congresswoman Angie Craig (D-Minn.) noted that the testimony before the subcommittee and conversations with her constituents had made it clear that “risk management tools like crop insurance are more important than ever. Federal crop insurance has been a success story because it’s actuarially sound and consistently works for farmers.”

Crop insurance is popular and trusted by farmers because it is affordable, widely available, and economically viable. It gives farmers the tools they need to tackle the challenges of today – and tomorrow.

Farmers Emphasize to Congress Importance of Crop Insurance

Farmers from across the country testified last week before a House Agriculture Subcommittee hearing examining the efficacy of the farm safety net.

While each grower had a unique story to share, a common thread quickly became clear: America’s farmers depend on the Federal crop insurance program.

Read in their own words what crop insurance means to America’s farmers:

“Crop insurance is a vital tool for farmers, and Congress must not do anything to undermine it.” – Wes Shannon, peanut and cotton farmer in Georgia

“Crop insurance is a cornerstone of my operation. Our ability to market our grain, manage our risks and financially survive depends on crop insurance. Hundreds of thousands of dollars are invested in a growing crop that can be wiped out in one weather event. And there are broader impacts on the ag economy. Considering what farmers spend on ag inputs, machinery, equipment, and crop protection, we must be successful for everyone else. That’s why crop insurance is so critical for our entire industry.” – Jeff Kirwan, corn and soybean farmer in Illinois

“Federal crop insurance is an absolute mainstay to rural Minnesota and farm families like mine. If Washington does anything on farm policy, it should first do no harm to crop insurance.” – Rob Tate, farmer, crop insurance agent, and crop revenue consultant in Minnesota

“I view the Federal crop insurance program to be a fundamental element of the safety net that secures the survival of domestic food production, which I consider to be of critical national importance for all Americans.” – Brian Talley, specialty crop farmer in California

These testimonies reflect the key role that crop insurance plays in the farm safety net. More than 1.1 million Federal crop insurance policies provide more than $100 billion in coverage across more than 380 million acres of farmland in all 50 states. It’s available to farmers of all sizes and more than 130 commodities.

Throughout the hearing, the growers shared their personal experiences with crop insurance and outlined the strengths of the Federal crop insurance program.

Unlike ad hoc disaster bills, which can take years before help arrives, crop insurance delivers assistance for covered losses in just days or weeks. That’s because crop insurance is built on a unique private-public partnership that draws on the efficiency of the private sector to quickly assess damages and determine losses when Mother Nature strikes.

The crop insurance program also gives farmers predictable tools to manage their unique risks. Farmers invest in crop insurance before a disaster – sharing in the risk – and they know how the rules of their policy will help them recover.

Rob Tate also testified that as an agent, he’s seen how important crop insurance is not only for established farmers, but also beginning and socially disadvantaged farmers who need to secure credit and manage their risks.

It’s no wonder that when everything is on the line, America’s farmers turn to crop insurance. Congress must continue to strengthen the crop insurance program and preserve this vital part of the farm safety net.

Crop Insurance Protects YOUR State

The past year has instilled in many of us a deeper appreciation for America’s farmers and ranchers – and the daily challenges they face to keep America supplied with a bounty of food and fiber.

From sea to shining sea, America’s crop insurance providers are proud to stand beside our farmers and ranchers and provide them with the risk management tools that they need to weather any storm.

In fact, crop insurance protects farmers in all 50 states, covering nearly 400 million acres across America.

How does crop insurance protect your state?

Visit CropInsuranceInMyState.org to explore 50 fact sheets highlighting the importance of agriculture and demonstrating how crop insurance keeps your state growing.

From small produce farms to large row crop operations, crop insurance is available to all farmers, no matter their size or what they choose to grow. It covers more than 130 different commodities

Both cranberry growers in Massachusetts and corn farmers in Texas count on the safety net provided by crop insurance to help make these two very different crops among the top crops in their states.

And a thriving agricultural economy contributes to the economic health of each state, underscoring the important role that crop insurance plays in supporting our communities.

Each fact sheet also highlights one of the most unique aspects of the crop insurance program: the private-public partnership that requires both farmers and private insurers to invest into the crop insurance system. Farmers and ranchers collectively pay between $3.5 billion and $4 billion a year out of their own pockets in crop insurance premiums.

Farmers and ranchers continue to invest in crop insurance because not only is it affordable and widely available, but they also know they can count on crop insurance to deliver aid quickly when disaster strikes.

Check out your state’s fact sheet at CropInsuranceInMyState.org and share why crop insurance matters to you on social media using the hashtag #InsureMyState.

Crop Insurance Basics: Risk Mitigation and Risk Management

Risk mitigation and risk management are two sides of the same coin when it comes to improving agricultural outcomes and promoting climate-smart decisions.

On the front of the coin, we have risk mitigation. This side represents all the steps farmers and ranchers take to reduce the amount of risk they face. For example, farmers utilizing precision ag technology, new seed varieties, or conservation practices like reduced tillage and cover cropping can increase their resiliency by improving yields and soil health.

On the back of the coin, we have risk management. This side represents all the steps farmers and ranchers take to manage the costs and impacts of the many uncontrolled risks they still face. Agriculture’s primary risk management tool is crop insurance, which is delivered by private-sector insurers and is partially funded by farmers through premiums.

For optimal effectiveness, these two sides should work in concert, not conflict, to encourage conservation while ensuring the ability of farmers and ranchers to continue operating after a disaster.

Crop insurance must be flexible enough to embrace the newest tools, technologies, and techniques being used to improve the land, conserve resources, increase operating efficiencies, and mitigate risk. Conversely, new conservation efforts must be consistent with the economics that underpin crop insurance’s widely successful risk management strategy.

These facts were reinforced by a recent study published in the renowned peer-reviewed Journal of Environmental Management. It noted that crop insurance is not a barrier to the adoption of conservation practices and is key to helping farmers maintain healthy soil.

The public-private partnership of crop insurance has evolved over the years to become the cornerstone of America’s farm safety net policy. And it has stood the test of time because of built-in flexibility responding to any situation that Mother Nature presents.

Specifically, the system is built on constant data analysis, up-to-date good farming practices, and actuarial soundness, which means premiums for coverage generally cover expected indemnities over the long term.

Crop insurance encourages smart farming practices on the most productive land through a self-correcting premium rating and underwriting system. In short, farmers who have a strong Actual Production History (APH) get better premium rates and thus lower premiums relative to their higher yields. Lower premiums motivate farmers to mitigate risk and build strong production histories with higher yields.

Crop insurance is also constantly improving, which is imperative as farmers deal with the ill effects of extreme weather. Section 508(h) of the Federal Crop Insurance Act allows for the private submission of crop insurance policy ideas and sets forth clear criteria for policy approvals by the Federal Crop Insurance Corporation Board of Directors.

The U.S. Department of Agriculture also works to continually improve crop insurance through the development of new policies. For example, the new Hurricane Insurance Protection – Wind Index Endorsement coverage arrived just in time to help offset devastating losses from the string of hurricanes that occurred during 2020. This new option was quickly added to fill a need in the agricultural community, and in its first year of implementation, it helped farmers rebound from eight significant wind events.

The new hurricane program – just like insurance products covering more than 130 crops in this country – works because it is rooted in sound science and economic principles.  These fundamentals of actuarial soundness will be essential as policymakers look for ways to encourage farmers to adopt more and more conservation practices. Policymakers must not lower insurance premium rates without proper justification – to do so would only place the entire risk management system in jeopardy and arbitrarily punish the farmers it serves.

Instead, incentives should reward farmers for their actions without upending actuarial soundness. State governments in Iowa, Indiana, and Illinois have found a way to do this with local programs that help offset a portion of farmers’ insurance costs.

In other words, the two sides of the coin must continue working together as they are designed to do.

Crop Insurance 101

Crop insurance is a critical program for maintaining our nation’s supply of food, fuel and fiber. It helps farmers and ranchers navigate the risks of farming and plant again after a disaster while providing them the necessary stability to continue investing in long-term conservation practices.

But with terms like “Actual Production History” or “Whole-Farm Revenue Protection,” it might sometimes feel like you need to be an insurance whiz to fully understand how this public-private partnership works.

That’s why National Crop Insurance Services (NCIS) put together CropInsurance101.org.

There, the public and policymakers can learn more about the history of crop insurance and how it works today to protect farmers and ranchers.

We’ve recently added a wealth of new content:

  • Links to the entire “Crop Insurance Basics” series, which explores crop insurance concepts in an easy-to-understand way.
  • Information on a peer-reviewed study in the Journal of Environmental Management which found that crop insurance is not a barrier to the adoption of conservation practices and plays a role in helping farmers maintain healthy soil.
  • New glossary definitions, including important program elements like Good Farming Practices and Section 508(h) submissions.
  • Farmer testimonials sharing how crop insurance is an indispensable part of their risk management toolkit.

Over the past year, farmers and ranchers have faced untold challenges, ranging from a global pandemic to devastating weather events. Looking forward, they’re building on decades of best farming practices to protect the soil, air and water that nurture their crops.

Rural America is resilient. But they can’t do it alone.

The strength of crop insurance has made it the cornerstone of the farm safety net. Last year a record nearly 400 million acres across America were protected by crop insurance.

Learn more about crop insurance keeps America growing by visiting CropInsurance101.org or following NCIS on Facebook and Twitter.

Crop Insurance Basics: Moral Hazard

Moral hazard is a phrase commonly used in the business community that simply means people act or perform differently when they are fully insulated from risk. An entry on the topic in Investopedia.com explained it like this:

We encounter moral hazard every day – tenured professors becoming indifferent lecturers, people with theft insurance being less vigilant about where they park, salaried salespeople taking long breaks, and so on…

The idea of a corporation being too big or too important to fail also represents a moral hazard. If the public or management of a corporation believe that the company will receive a financial bailout to keep it going, then the management may take more risks in pursuit of profit.

The term frequently surfaced during the Great Recession, with the Federal Reserve Chairman even noting, “As we try to make the financial system safer, we must inevitably confront the problem of moral hazard.”

Of course, moral hazard doesn’t just apply to investors. The concept is at the core of insurance products, including crop insurance. A driver with great insurance, a cheap premium and no deductible, for example, might drive more aggressively and be willing to file repair claims on every little scrape or ding.

That’s why auto insurance policies have deductibles and why previous accidents and claims are factored into future premium rates.

Crop insurance customers similarly share in the cost of premiums, receive rates based on past production and shoulder deductibles as a deterrent to risky behavior.

Farmers who know they will lose money by planting a crop not suitable to a specific soil or climate, will not plant that crop. Instead, they plant the best crops for their regions and work hard for a bountiful harvest while purchasing insurance protection to offer some assistance in the event that disaster strikes.

In short, farmers have little moral hazard because they share in the cost of their own safety net. And the American public appreciates this cost-sharing structure.

A recent public opinion poll of 1,000 U.S. voters found that nearly three-quarters of Americans believed that “farmers should help fund farm policies so that taxpayers are not paying the full cost.”

When respondents found out how much of the crop insurance tab farmers paid, they were also pleased. Nearly seven in 10 voters either said that farmers were being asked to pay too much or were paying the right amount of their premiums. Similarly, eight in 10 felt that the average loss deductible of 25 percent that farmers shoulder before receiving aid is about right or even too high.

Sounds like Congress got it right when lawmakers made crop insurance the centerpiece of modern-day farm policy in the 2014 Farm Bill.

USDA Chief Actuary Highlights Crop Insurance Strengths

America’s farmers and ranchers face an incredible number of risks every year, ranging from catastrophic weather events to market disruptions. That’s why rural America relies on the risk management tools provided by the Federal crop insurance program.

Dr. Thomas Worth, Chief Actuary at the U.S. Department of Agriculture’s (USDA) Risk Management Agency, recently spoke at an Agri-Pulse forum and highlighted some of the strengths of crop insurance, especially as farmers take action to combat climate change.

Farming is a dynamic environment, Worth said. So, the Federal crop insurance program has to be dynamic as well to accurately reflect risks and help farmers adopt conservation practices.

USDA is constantly updating premium rates and analyzing data to reflect a farmer’s actual risk.

“We’re always looking at and making refinements to mapping out high risk land like flood plains” Worth cited as an example, as well as evaluating weather trends and looking at region-specific agronomics.

One way that the Federal crop insurance program is designed to incentivize practices that benefit the environment is by utilizing a farmer’s Actual Production History. This is a self-correcting feature that discounts premiums for any producer who improves their performance.

This naturally incentivizes farmers to adopt best practices and techniques for their area – and avoid practices that would harm their performance, such as planting on land not appropriate for their crop.

“Farmers are highly motivated to take measures to mitigate [their risks] and crop insurance is structured so that farmers are best off when they grow a full crop,” Worth said, calling this a “results-based discount.”

Worth pointed to cover crops as an example of one practice that is gaining popularity. The USDA recognizes cover crops as a Good Farming Practice, which encourages farmers to use cover crops to prioritize soil health and resiliency. Ultimately, the use of cover crops can help reduce risk and improve a farmer’s yields, resulting in lower crop insurance premiums.

In fact, the Journal of Environmental Management recently published a peer-reviewed study that credited crop insurance with encouraging the adoption of conservation practices, such as cover crops.

Importantly, Worth emphasized the importance of crop insurance to the farm safety net and said it plays a critical role in helping farmers adapt to the challenges of tomorrow.

“The investments needed to make a farm resilient are generally long term in nature or may take a number of years before the benefit is fully realized,” Worth said. These types of investments can be difficult to make when a farm could go under after one bad year.

“Crop insurance provides the kind of financial stability, that will enhance the ability of farmers to think long-term, and to make the investments needed to adapt and be more resilient,” Worth said.

Crop insurance is proud to work with America’s farmers and ranchers to improve conservation practices and support a healthy environment.

Celebrating the Incredible Women of Crop Insurance

Last week, as we celebrated Women in History Month, the U.S. Department of Agriculture (USDA) hosted a special conversation to honor the women who work in the crop insurance industry.

Kendall Jones, chair of the National Crop Insurance Services (NCIS) and president and CEO of ProAg, and crop insurance agents and industry leaders Iris Sáenz and Pat Swanson participated in the discussion moderated by Richard Flournoy, Acting Administrator of the USDA’s Risk Management Agency.

Each of the women spoke about their careers in agriculture and the important contributions made by women in the crop insurance industry over the years.

“This industry is led by so many female agents in the field, so many female adjusters, people who do so much hard work,” Jones said. “I’m impressed with so many of the agents that I know today – not only are they running their agencies, they’re helping run farms or running the farms themselves, they have other businesses, they support the industry, their communities… They’re an inspiration to us all.”

Sáenz spoke about how women have always been key to food and farming.

“From the field to the table, women have always played an important role in agriculture. Since Indigenous tribes freely roamed these lands, women have been the primary providers of nourishment for their families and communities. Perhaps that is why many of us here today are inclined to dedicate ourselves to our agricultural communities… that is why it is so important that we, as women, come together to lift each other up.”

It’s important to honor the incredible work of the women in the crop insurance industry – and continue to share the stories of these women to inspire future generations of farmers, ranchers and agents.

Jones advised women who are just beginning their careers to be curious and take risks. Mistakes are inevitable, but with mistakes will also come successes that will build your confidence.

Swanson echoed this advice to be continually curious.

“My biggest advice to everyone… never stop learning. I feel it is so important to continue learning about your industry, about your farmers, about your customers you serve,” she said. “Never be afraid to ask questions.”

While each woman’s story and experience in agriculture has been unique, each found a fulfilling career working in the crop insurance industry and helping America’s farmers and ranchers manage their risks.

“From the cherry orchards in Michigan to the boardroom of the USDA building in Washington, DC, crop insurance has given me endless opportunities along the way,” Sáenz said.

We applaud the women of crop insurance for sharing their inspiring stories and grateful that they are helping continue the legacy of strong women in agriculture.

Crop Insurance Basics: Incentives

When policymakers prioritize specific behaviors or actions, they usually turn to incentives to jumpstart the process.

For example, the U.S. government has long promoted the benefits of homeownership to individual families and the economy as a whole. Hence, lawmakers introduced mortgage interest deductions on income tax filings to make homeownership more affordable and attractive.

In the world of agriculture, the public-private crop insurance system is often used as an incentive vehicle.

It’s helpful to think of crop insurance incentives in two buckets. The first bucket is using reductions in a policy’s premium rate to incentivize desired behavior. But with insurance, the key is not to incentivize in a way that upsets the delicate actuarial balance of the system, which could inadvertently do more harm than good.

For example, it would be inappropriate or unsound to arbitrarily discount premiums to promote an action without actuarial and financial justification – doing so could negatively affect coverage levels and/or drive up premiums for other farmers to offset resulting losses.

So, policymakers designed crop insurance with a self-correcting feature that naturally discounts premium for any producer who improves their performance. This catch-all incentive rewards any behavior that increases yields and reduces risk for farmers and taxpayers.

Take conservation for example. Farmers are turning to conservation practices like no-till more and more because those practices lower production costs and improve soil health which over time can lead to increased yields.

Through crop insurance’s incentive known as Actual Production History or APH, those farmers with above average yields are naturally rewarded with lower premiums.

The second incentive bucket works differently. In it, policymakers don’t adjust or discount premium rates. Instead, they offset a higher percentage of the farmer’s overall share of the premium costs.

This protects the actuarial soundness of the crop insurance system while providing additional financial incentives to help farmers who are willing to adopt preferred behaviors.

In recent Farm Bills, Congress wanted to encourage people to get into farming. To do this, the government agreed to offset a higher percentage of insurance premiums for new and beginning farmers as well as military veterans looking to break into farming.

Some states offer this second kind of incentive, too. In Iowa and Illinois, growers can get additional help paying their insurance premiums if they agree to plant cover crops – a conservation practice that helps sequester carbon, reduce soil runoff, and improve soil health.

These state pilot programs – although small – have proven to be very popular with farmers and have achieved the states’ goal of adding cover crop acreage.

Best of all, once this cover-cropping technique starts improving overall farm yields, it is rewarded with a higher APH and lower premium rate, falling within the first-bucket incentive, which will only encourage even higher levels of participation.

Crop Insurance Basics: Actual Production History

One of crop insurance’s defining attributes is its self-correcting nature.

That is, farmers who exhibit more risk pay more than those who exhibit less – much in the same way that car insurers reward safe drivers.

This is done by collecting and analyzing a producer’s Actual Production History (APH), which takes into account a grower’s actual yields over a period of time. It also compares performance to other farms within the county and surrounding communities.

Growers with a higher APH are able to get lower insurance premiums, saving both themselves and taxpayers money.

In this way, the APH formula serves to reward farmers for adopting new technologies and techniques that enhance efficiency and productivity.

For example, some agronomists, conservationists, and policymakers are currently promoting conservation practices – e.g., reduced till and cover cropping – explaining that these practices not only help the environment but can boost a farm’s bottom line.

When these conservation practices show dividends through higher-than-average yields, then the producer will be financially rewarded for adoption through cheaper insurance premiums.

This structure is one reason why a new peer-reviewed study in the renowned Journal of Environmental Management recently credited crop insurance with encouraging the adoption of conservation practices.

Conversely, higher premiums under the APH system act as a deterrent to farmers taking on more risk – for example, by not adopting the latest tools and techniques like their neighbors, planting the wrong crop for the geographic region, or farming on marginal land.

Such deterrents are of particular importance as farmers and ranchers must optimize efficiency to deal with extreme weather and the effects of climate change.

With a clear APH history record, farmers can more accurately select insurance policies that help them manage their unique risks and benchmark their performance.

The APH system provides growers with a clear incentive to constantly improve.

Crop Insurance Basics: Available to All

In the everyday insurance world, coverage may sometimes be hard to come by.

That can be true if you’ve had a disaster – such as a fire in your home – or live in an area at high risk for disaster. Car insurance coverage may be more expensive or even denied if you are a very young or very old driver, even if you’ve never had to file a claim.

Crop insurance is different.

Under the crop insurance system that has become the centerpiece of America’s farm policy, private-sector insurance providers must offer insurance to growers who are eligible for coverage and want it – regardless of a farm’s size, location, or cropping choice.

Additionally, crop insurers don’t have control over premium setting. A farmers’ rates are calculated and published by the USDA and, unlike other lines of insurance coverage, prices will not fluctuate between insurance providers.

Crop insurers compete on customer service, not price. And they cannot choose to simply do business with well-established farmers from areas that have a history of lower risk crops.

In fact, the crop insurance system must always look for ways to cover more and more farmers. Such inclusivity is a shared responsibility of the public and private sectors, which have partnered to bring additional public and privately augmented insurance options to the marketplace and keep pace with a constantly evolving agricultural sector.

While crop insurance was originally only available to major crops – such as corn, cotton, and wheat – it now offers coverage on 130 different crops, including most fruits and vegetables. Today, more than 1 million insurance policies provide $100 billion in protection to nearly 400 million acres – including about 90 percent of U.S. crop acreage.

And more policies and options are regularly being added through the USDA’s program to encourage new product development, where insurers work along-side farm leaders and researchers to create new and unique policies for everything from alfalfa seed to all-encompassing whole farm revenue protection.

Furthermore, this partnership teams up to deliver in-depth training services across the country for small and socially disadvantaged farmers to strengthen and broaden their familiarity with the inner workings of business planning and risk management strategies.

It’s a system that has married the best of the private sector with the best of government, and the result has been the most effective, popular farm safety net in the history of agriculture.

Agricultural Coalition Sends Letters Urging Federal Leaders to Protect Crop Insurance

With a new Administration taking control in Washington, D.C., and many new members joining Congress, it’s more important than ever to remind elected leaders the crucial role crop insurance plays in protecting farmers, ranchers, and rural communities.

That’s why a group of 58 farming, banking, and conservation organizations sent letters last week to House and Senate budget and appropriations committees, as well as to Secretary of Agriculture Tom Vilsack and leaders at the Office of Management and Budget, asking them to protect crop insurance and avoid any harmful budgetary reductions.

The letters, which arrived in the respective chambers just as leaders turn to the FY2022 budget, highlight the fact that the past several years have been incredibly challenging for farmers and ranchers because of drastic weather extremes, the disruption of international markets, the COVID-19 pandemic and numerous other unforeseen challenges.

“Even in good years, farmers need access to a strong and secure Federal crop insurance program,” the letter states. “The strength and predictability of the program is only more critical given uncertainty that characterizes the production agriculture sector. USDA and Congress have taken extraordinary ad hoc measures over the past three years to ensure the financial security of rural America.

“It would only serve to undercut these efforts to propose harmful changes to a crop insurance program that provides predictable, within-budget assistance to farmers in a way that helps lenders continue to support America’s farmers and ranchers. It is the certainty of the crop insurance program that provides critical reassurance to lenders.”

The letters, which were signed by groups ranging from the American Farm Bureau Federation to the National Association of State Departments of Agriculture to the National Farmers Union, close by asking lawmakers to continue supporting farmers’ most important risk management tool.

Crop Insurance Basics: Good Farming Practices

Suppose you’re a homeowner who intentionally neglects your property, refusing to make basic repairs and even creating unsafe conditions like exposed wires or leaky pipes. Now suppose your house, not surprisingly, is damaged from a resulting fire or flood.

Are you entitled to a full homeowner’s insurance payout?

Of course not. A homeowner’s policy has exclusions and conditions to ensure the homeowner acts responsibly and is not neglectful. Otherwise, fraud could become more commonplace and responsible homeowners would wind up paying more in premiums to offset others’ losses.

Crop insurance is no different and requires responsible stewardship. A farmer who starves a crop of nutrients and water, plants late, or farms in a manner that jeopardizes the insured property would be ineligible for indemnities when the crop fails.

Fortunately, America’s farmers are the most efficient and productive in the world. They are honest and determined to take care of the land that takes care of them. And they do the job right.

Doing the job right in agriculture is officially known as Good Farming Practices, which are defined by the USDA’s Risk Management Agency and required as a condition of insurance.

Good Farming Practices, or GFPs, are constantly evolving to keep pace with new technologies and changes in the market, weather, and land management. These practices are rooted in science and data and are based on regional research. In other words, GFPs must be proven to work.

GFPs are the production methods that farmers follow to cultivate a crop and allow it to make normal progress to maturity, ranging from the timing of planting and harvest to using the best crop rotations, crop inputs, and farming techniques in the area.

Farmers follow GFPs when they choose the right variety of seeds to grow a good crop with high yield potential and a good market price. GFPs also include properly preparing the field, irrigating, fertilizing, and weeding during the growth period. Finally, GFPs mean collecting the mature crop from the field with harvesting methods that maximize output and minimize damage.

GFPs help ensure that production methods do not adversely affect the quantity or quality of production, and to keep up with the latest science and technology, they continually are monitored and improved. Local researchers, agronomists, and USDA extension agents are the keys to helping farmers keep pace with the latest and greatest in their area.

The GFP known as no-till is a great example.

The technique – which leaves crop residue in the field after harvest and a new crop planted using a drill or planter instead of first tilling the ground – is used on more than 65 million acres of farmland today. But it was rarely used until the late 1980s because farmers had long believed that tilling improved yields.

As more and more research showed the production and environmental benefits of no-till, including carbon sequestration and soil health, farmers were encouraged to change the way they farmed.

No-till is just one example. Other environmentally beneficial GFPs that have been adopted by agriculture and embraced by crop insurance in recent years include recognition of new drought-resistant seed varieties, more efficient irrigation systems, buffer strips, cover crops, and precision agricultural technology and equipment.

The flexibility within the insurance system helps expand the list of GFPs as farmers look to new proven technologies and techniques to tackle climate change, improve conservation practices, land management, soil health, water conservation, and any challenge tomorrow brings.

Crop Insurance Basics: Cost Sharing

Federal crop insurance is arguably the first farm policy in history that is financed, in part, by the farmers who benefit from it. Unlike farm policies of the past, which were 100 percent backed by taxpayers, modern-day farm policy requires growers to take an active role in sharing the financial costs of protecting America’s crops and livestock for a vibrant food supply.

The concept may be new to farm policy, but it’s not new to insurance. From the earliest shipping insurance at Lloyds of London in the late 1600s to the modern auto policy acquired instantly via a smartphone app, the principle is the same.

A customer pays a premium to an insurance company based on the value of property and predicted risks to insure its worth. If the property is damaged, the customer absorbs a portion of the loss, called a deductible, and the insurance company covers the remainder through an indemnity payment.

The deductible acts as a deterrent to risky behavior and keeps the insurance policy intact for true disasters. Meanwhile, premium dollars paid by customers fund the system that provides peace of mind.

The larger the pool of customers, the more risk can be spread, and the less expensive coverage becomes for all. The same applies to crop insurance, which is why arbitrarily excluding some farmers from participation or adjusting premiums without research-backed justification is not only a bad idea, but economically and actuarially unsound.

Today, famers collectively pay between $3.5 billion and $4 billion a year out of their own pockets in crop insurance premiums. And they absorb hefty deductibles (on average, 25 percent of loss) when disaster hits. In other words, they have a financial stake in the system, which ensures farmers are avoiding unnecessary risk and incentivized to embrace new technologies and techniques that drive efficiency and mitigate losses.

Famers utilize crop insurance because it offers predictability for marketing and for borrowing capital, and because it gives them the opportunity to tailor protection to their farms’ unique needs. Taxpayers reap the benefits, too.

That’s because in addition to farmers helping to offset costs, private-sector insurers are also investing dollars into the system. Crop insurance companies, for example, invest millions in new technologies, training, research, data collection, analytics, and customer service to keep things running smoothly.

And when Mother Nature strikes, companies often dig into their own reserves to keep farmers whole. For example, insurers experienced a $1.3 billion underwriting loss during the 2012 drought because indemnities paid outstripped premiums received.

Put simply, farmers, insurers, and the government must work together to fund crop insurance and ensure it can meet the challenges of tomorrow – from climate change to volatile markets.

Crop Insurance Basics: Actuarially Sound

Unless you’re an economist, an insurance guru, or a pension fund manager, chances are good you’re not overly familiar with the term actuarial soundness.

In short, it’s a fancy way of saying “the math must work.”

For example, an actuarially sound pension fund will have enough money in the bank to meet future obligations. If not, and investments made by the fund are overly risky or too conservative – or expenses run amuck – then a whole slew of retirees could be left in the cold.

Federal crop insurance, by law, must be actuarially sound. This ensures that the amount of money in the system is sufficient to meet the costs of paying claims when disaster strikes – and to establish a small reserve for possible extreme losses in the future. To achieve this goal, premium rates are adjusted regularly to reflect current market and crop conditions – a process that requires constant number crunching and research.

This kind of diligence and regular adjustment becomes especially important for those areas where the weather is turning more and more extreme amid climate change. And on the flip side, adjustments can be made to reflect changing conditions that may indicate less risk.

By being actuarially sound, the crop insurance system has a loss ratio performance mandate of “not greater than 1.0” – meaning that over time, indemnity payments paid out to farmers should equal the total premiums invested into the system.

Actuarial soundness has helped the program survive extreme events like the devastating drought in 2012, the worst disaster to hit agriculture since the Dust Bowl. But the system was managed prudently in the preceding years meaning that insurers had reserves to help pay $17 billion in indemnities and keep rural America afloat. The same could be said for the flooding and string of hurricanes seen in recent years.

Things could have turned out much differently had crop insurance not been actuarially sound and historical premiums not been sufficient to cover long-term losses.

That’s why crop insurers invest in actuarial professionals, data collection and analytics. It’s also why decisions made by policymakers carry such huge ramifications for farmers’ most important risk management tool.

Lawmakers must guard against creating new policies that reduce premium rates below future anticipated indemnities, increase risk within the system, or negatively affect the coverage that can be offered. Such policies will likely upset the fine-tuned balance that defines the crop insurance system and makes it affordable, widely available, and economically viable.

In other words, the math must work.

Crop Insurance Protected U.S. Farmers, Rural Communities as Weather, Health, Political Challenges Rocked the Nation in 2020

U.S. crop insurance policies protected the country’s farmers and ranchers and ensured rural communities stayed strong in the face of the COVID-19 pandemic, tornadoes, hurricanes, and political unrest. In all, those policies protected 398 million acres of land in 2020.

In her opening remarks at the crop insurance industry’s annual meeting, Kendall Jones, chair of the National Crop Insurance Services (NCIS) and president and CEO of ProAg, told the group that 2020 had been a challenging year for our country. But crop insurers rose to the challenge and provided stability to rural communities.

“We are in the crisis business,” Jones said. “So, it is not surprising that we performed extremely well over the last year, helping America’s farmers and ranchers mitigate their risks, continue their essential work, and keep the world fed.

“From floods and wildfires to hurricanes and even ‘The Derecho,’” she continued, “we were there to help our customers pick up the pieces in an unprecedented time of hardships created by lost crops, lost customers, and lost markets in the U.S. and overseas.”

To date, the crop insurance industry has delivered $7.4 billion in indemnities to help farmers rebuild. This includes a brand-new insurance product that is tailored to hurricane protection – a product that was triggered by eight separate weather events during last year’s unprecedented string of hurricanes.

“Our industry works with our government partners and leverages the efficiency of the private sector to make sure farmers and ranchers get payments on time,” Jones said. “This keeps agriculture growing after disaster strikes and quickly stabilizes rural economies.”

During the annual meeting, which was held virtually this year, Jones told attendees that agriculture has the unique power to unite lawmakers on both sides of the aisle.

“Elected officials on the right of the political spectrum often emphasize the importance of vibrant rural businesses, reducing risk, keeping taxpayer costs low and expanding the economy,” Jones said. “On the left, lawmakers also tout a healthy economy and place an emphasis on sound science, sustainability, and giving those in need a helping hand. That sounds just like crop insurance to me.”

Jones concluded by taking time to applaud many of the behind-the-scenes industry initiatives that often go unrecognized.

This includes collecting and analyzing mountains of data and conducting new research to continually improve operations and customer service. She also highlighted industry investments over the past decade to provide free business training to socially disadvantaged farmers and award scholarships to minority students attending 1890 Land Grant Universities.

New Study Highlights Crop Insurance’s Role in Maintaining Healthy Soil

Crop insurance is not acting as a barrier to the adoption of conservation practices and has a role in helping farmers maintain healthy soil. That’s according to a new peer-reviewed study in the renowned Journal of Environmental Management.

During the study, researchers from Purdue University, Arizona State University, and the Nature Conservancy used interviews and a multi-state survey to determine if crop insurance requirements limited cover crops and conservation tillage for corn producers in the Midwest.

“Questionnaire responses indicate that crop insurance was not limiting conservation adoption,” according to the study. “When given a list of potential limiting factors for conservation adoption, including cost and time/labor required, crop insurance was perceived as the least limiting, in comparison to all other factors, for both conservation tillage and cover crops.”

Conservation tillage and cover crops were specifically studied because, according to the researchers, these practices reduce soil erosion, improve water quality, and promote soil health.

The study noted that the federal Risk Management Agency, in the 2018 Farm Bill, designated cover crops planted in 2020 and later as a Good Farming Practice – a distinction that should help further promote the conservation practice.

Among the notable findings reported by the Journal of Environmental Management:

  • Fewer than 6 percent of farmers believed crop insurance was limiting conservation adoption.
  • Respondents were already using both crop insurance and conservation on their farms. 90 percent were enrolled in crop insurance, 60 percent used conservation tillage, and 25 percent planted cover crops.
  • Adoption rates of conservation practices were higher among respondents enrolled in crop insurance than those not using crop insurance.
  • Both crop insurance and conservation were credited by farmers as being important and complementary tools to their risk management strategies.

Despite the clear evidence that crop insurance requirements are not barriers to conservation, researchers lamented the fact that some members of the agricultural media are perpetuating a myth that crop insurance and cover crops are mutually exclusive.

“Posing these two behaviors as incompatible is misleading and unrepresentative of the broader agricultural population,” the researchers concluded.

NCIS Scholarship Program Helps Students, Promotes Diversity in Agriculture

Jaevien Akinmola grew up helping his grandfather raise vegetables and fruit in rural South Carolina.

Farming was everywhere in his hometown of Manning. He could walk out his front door and into a farm field just down the road.

Today, Akinmola is studying Agribusiness at South Carolina State University. He has big plans to be a leader in agriculture well beyond the limits of Manning.

“I want to pursue my master’s degree as well as a juris doctorate degree and begin working with (USDA) to start off to mastering more of the policy side … to understand what can be done internationally as well as nationally within our own borders as far as agricultural work,” he said.

Akinmola is one of five students who recently received scholarships from National Crop Insurance Services.

The NCIS 1890 Scholarship Program is designed to help students at 1890 Land-Grant Universities complete their education and prepare for careers in agriculture. Land-grant institutions are historically black universities focused on agricultural and mechanical sciences.

Since starting the 1890 Scholarship Program 10 years ago, NCIS has helped fund schooling for more than two dozen students. Many are the first in their families to go to college. The program is part of a commitment within the crop insurance industry to increase the diversity in its workforce, reflecting the diversity of the farmers it serves.

“It’s meant a lot,” said Akinmola. “For one, it’s just meant that my hard work paid off and to be able to get this recognition on a national scale is very, very meaningful for to me. I’m just glad they see the work I’m doing and are willing to invest in me. It shows that I have support out there and I can even have a future with them hopefully.”

Watch Akinmola’s story here along with video stories about all of the 2020-22 NCIS 1890 Scholarship Program recipients.

Idaho Farmer: Crop Insurance Helps Farmers Feed America

Located in the southeastern corner of Idaho and situated in a high desert environment more than 5,000 feet above sea level, the town of Rockland can be a difficult location to farm. Extreme weather has the potential to quickly devastate crops.

Fifth generation Idaho farmer Jamie Kress understands these challenges and that’s why Jamie and her husband, Cordell, purchase crop insurance to help mitigate weather and markets risks on their family farm.

Jamie recently penned an op-ed for her local paper sharing her first-hand experiences with crop insurance.

“It’s really frustrating when all of your blood, sweat and tears is out there on the line and Mother Nature is calling the shots at that point,” she wrote.

“Crop insurance is one of those things that lets you sleep a little bit better at night because it protects you from the risks of Mother Nature. It means if you have a crop failure, or you have a yield that is not what it could have been, you won’t be out of business.”

Jamie went to school for accounting and Cordell is an engineer. Their backgrounds help them make data-driven decisions about what works best for their farming operation. That’s why Jamie and Cordell trust crop insurance.

“The protection crop insurance products offer today help farmers manage weather risks, and the markets, so they can stay in business and grow the essential food, fiber and fuel products that are critical to our nation’s safety and security,” Jamie explained.

“Crop insurance is extremely popular with farmers because it is very reliable,” she added.

Jamie has worked to share her family’s farming story with Congress.

“I’ve spent some time in Washington talking to our lawmakers about farming. I always try to help them understand that farming is not just a job – it’s a passion, it’s a lifestyle,” she writes. “For farm families, it is our world.”

And with so much on the line – including our nation’s food supply – Jamie is asking Congress to continue its robust support of the Federal crop insurance program.

“We are grateful that Congress maintained our strong system of crop insurance in the 2018 Farm Bill. As the new leaders take office in Washington, we hope they will keep crop insurance affordable and widely available.”

Crop insurance plays an indispensable role in supporting America’s farmers and ranchers as they invest in sustainable agriculture and grow the food and fiber products we all depend on. Congress must continue to protect crop insurance so that farmers and ranchers have the tools they need to succeed.

Stronger Together: Farmers Count on Crop Insurance During Difficult Year

As America’s farmers and ranchers reflect back on this turbulent year, they’ll recall drought affecting much of America’s farmland, severe winds sweeping across Iowa, a record-breaking hurricane season and – oh yes – the COVID-19 crisis.

Throughout the difficulties farmers and ranchers faced in 2020, crop insurance was there to help them endure hardship and minimize risks so they can plant their crops again next year.

Tom Zacharias, president of National Crop Insurance Services (NCIS), spoke about the challenges of 2020 and the importance of the farm safety net with the National Association of Farm Broadcasting and RFD-TV.

“America’s farmers and ranchers never stopped their essential work of feeding America,” Zacharias said. “That’s why crop insurers, agents, adjusters and our partners at USDA have continually worked to support the farm community. It has been our priority to maintain our incredible record of service to the American farmer during this tough year.”

“It would be an understatement to say that farmers face an unpredictable future, but fortunately crop insurance is a predictable risk management tool,” Zacharias added.

Crop insurance is agriculture’s most effective and reliable risk management tool because it utilizes private-sector efficiencies and innovation to quickly deliver to the farm community.

And farmers and ranchers trust crop insurance. They purchased 1.1 million crop insurance policies in 2020 to protect nearly 400 million acres.

This proven record of success and the continued support of Congress has cemented crop insurance as the cornerstone of the farm safety net.

“No doubt, new uncertainties lie ahead, but we are stronger together,” Zacharias said. “America’s farmers and ranchers can rest easier knowing that their local crop insurance agents, adjusters, and crop insurance companies stand ready to quickly provide a helping hand when it is needed.”

2020 is a testament to the important role that crop insurance plays in not only protecting our food, fuel and fiber supply but also supporting millions of jobs along Main Streets throughout America. That is why it is critical that Congress keeps crop insurance affordable, widely available and economically viable.

Together, we navigated this difficult year and kept America growing. We’re looking forward to seeing what we can accomplish next year, and in the years to come.

Through Tough Years and Unexpected Hardships, Crop Insurance Helps Farmers Stay in Business

Just along the Texas-New Mexico border lies the small town of Texline. This west Texas community is where Valerie and Michael Diller raised their family while growing corn, wheat, hay and caring for sheep.

Farming isn’t easy, and the Diller family has experienced their fair share of heartbreak. They credit crop insurance with helping their farm weather disaster in an opinion piece recently published in the Amarillo Globe-News.

“For those tough years and unexpected hardships, I am thankful that Congress has supported a strong federal crop insurance program to help get us through,” Michael wrote.

When Valerie and Michael were beginning farmers, a storm badly damaged their wheat and corn crop. The safety net provided by crop insurance saved their farm and allowed them to once again plant the following year. After their firsthand experience with crop insurance, the Dillers became advocates for this critical risk management tool, even selling crop insurance themselves.

Michael wrote in the Amarillo Globe-News:

There is no better way to insure your crop than through the public-private partnership of crop insurance. The protection crop insurance products offer today help farmers manage the risks of Mother Nature and the markets so they can stay in business and grow the essential food, fiber and fuel products that are critical to our nation’s safety and security.

And this year has come with no shortage of obstacles for America’s farmers and ranchers.

…while farming always comes with risks, this year has presented some unique challenges. It’s been a rollercoaster ride on the market this year during this unprecedented time of the COVID-19 pandemic. Corn is at about the lowest price in memory.

Farmers in the west Texas panhandle are really scared about whether they are going to be able to make it next year. The tremendous rise in prices at the grocery store is not reflected at the farm level. These are issues that not only harm the farmers who are trying to make a living, but all of the small businesses and other jobs that farming supports in our community.

That’s why farmers like Valerie and Michael have made their message to Capitol Hill clear: we must maintain a strong and widely available system of crop insurance.

Crop insurance kept the Diller family in business. And crop insurance agents and adjusters are proud to work every day to give a helping hand to farming families across the country.

As Michael concluded, “Now more than ever [crop insurance] is needed to help farmers produce a reliable, high-quality and affordable food supply for our nation.”

North Carolina Apple Grower Says Crop Insurance Key to Food Security

Kenny Barnwell is a fifth-generation apple grower in the mountains of North Carolina. His family farm covers approximately 150 acres and is home to 26 different varieties of apples.

This year has been tough for apple growers in North Carolina, much like farmers across the country. Apple growers have faced weather-related damages to their crop and fear revenue losses due to the COVID-19 threat and a decline in agri-tourism.

Despite the uncertainty, Barnwell takes comfort in knowing that he can rely on crop insurance.

He recently shared the importance of maintaining a strong crop insurance program in a column he wrote in his local paper, the Hendersonville Lightning:

The fact that I have a safety net under me with crop insurance helps me sleep at night, especially this season. I worked as a crop insurance adjuster for about 10 years, so I know just how well this public-private partnership works.

Crop insurance uses the efficiency of the private sector to quickly get relief to farmers so they can stay in business and continue producing the food, fiber and fuel that now, more than ever, are critical parts of our collective safety and security.

Crop insurance covers 3.5 million acres in North Carolina and provides $1.7 billion in protection. And as Barnwell notes in his piece, farmers have a role to play in their own protection by investing in crop insurance policies.

“The government keeps crop insurance affordable and widely available but it’s not free,” Barnwell wrote. “Farmers bought 1.1 million crop insurance policies last year, collectively paying $3.75 billion in premiums and shouldering more than $10 billion in deductibles.”

Throughout the COVID-19 pandemic, America’s farmers and ranchers have continued their essential work, feeding our nation. Crop insurance has been by their side every step of the way. Barnwell noted the importance of protecting a steady food supply:

As our nation recovers from the pandemic, and consumers learn more about where their food comes from, I encourage lawmakers to maintain a strong system of crop insurance to help ensure the safety and security of our nation.

Every American can sleep a little bit sounder knowing that crop insurance helps our farmers and ranchers feed our nation, no matter what challenges lie ahead.

Texas Family Says Crop Insurance Saved Their Farm

Valerie Diller met her husband Michael while they were students at West Texas State University.

They decided to return to his hometown of Texline, start a farm and raise a family.

About two years after they started farming, a terrible hailstorm destroyed all of their wheat and badly damaged the corn crop.

Fortunately, they had crop insurance. Without it, the Dillers say in a new video, they would have been out of business

That storm was pivotal for their farm and their lives. They started selling crop insurance after the storm because they saw just how important it was during a disastrous time.

“Truly, we wouldn’t be here today without it,” Valerie Diller says. “We would not be able to live where we live and do what we do. I decided at that point if there was a way to help people, if we could, I wanted to do that.”

Today they grow corn, wheat, hay and raise sheep. Their children decided to come back to farm. Their son is farming with them and their daughter is involved in the sheep business.

It’s been a rollercoaster ride on the market this year for the Dillers, and farmers across America, during this unprecedented time of the COVID-19 pandemic. Corn is at about the lowest price in memory.

Farmers in the west Texas panhandle are scared about whether they are going to be able to make it next year, the Dillers say. The tremendous rise in prices at the grocery store is not reflected at the farm level. They want Congress to know crop insurance is more important than ever.

“When I talk to a guy about federal crop insurance, I tell them there is no better way, no cheaper way, to insure your crop than through federal crop insurance,” Valerie Diller says. “You can’t farm without it.”

Watch the Dillers’ story at CropInsuranceinAmerica.org.

Thank a Farmer This Labor Day

Labor Day is a day to celebrate the achievements of the millions of men and women who keep America running.

This year, don’t forget to thank a farmer.

Approximately 2.6 million Americans work directly on a farm. Nearly 20 million more work in food and other agricultural-related industries.

Farming and ranching are certainly not your average 9 to 5 job. It’s sunup to sundown and sometimes all night long. Farming is a lifetime of commitment to caring for animals or producing a sustainable crop. It’s boots-on-the-ground work that requires equal measures of grit and grace and a little bit of good luck.

Despite the immense challenges that they have been presented with this year, America’s farmers and ranchers have continued to work every day in order to provide America with the most affordable, abundant and safest food supply in the world.

American agriculture keeps our grocery store shelves stocked, even in the midst of crisis, and supports our rural economies. That’s why we’ve made it our work to support America’s farmers and ranchers.

Crop insurance policies protect 380 million acres of land, or more than 90 percent of insurable farmland. Crop insurance is there when disaster strikes to quickly lend a helping hand and ensure that farmers can plant again another year.

We’re proud that America’s farmers invest their own money into sustainable risk management tools by purchasing crop insurance. And we are grateful for the continued bipartisan support from Congress for a strong Federal crop insurance program.

We will always work to ensure crop insurance remains affordable, widely available and economically viable. It’s a critical component of the farm safety net that protects our farmers and ranchers as they do what they do best: work hard to feed the world.

As you head into the holiday weekend, give a moment of appreciation for our farmers and ranchers. We certainly will.

Texas Farmer Hopes for Rain, Counts on Crop Insurance

Rain in West Texas can be scarce. So scarce, in fact, that farmer Brett Schniers wrote in a recent op-ed for the San Angelo Standard-Times that “when you lay down at night, you pray for rain because you don’t know when you’ll see it again.”

Despite the incredible promise of 2020, it has been a tough year for farming and ranching families across the country.

The Schniers family has already faced blistering drought, softball-sized hail that leveled their corn crop and plummeting prices due to the COVID-19 crisis.

“This year, we’ve needed all the help we can get,” Schniers wrote. “That’s why I’m grateful Congress, through the Farm Bill, helps make crop insurance affordable and widely available.”

Farmers and ranchers are resilient. Even in years like 2020, where it seems yet another disaster is always just around the corner. But while he hopes for rain, Schniers knows he can count on crop insurance:

We prepared at the start of the pandemic because we knew, as farmers, we couldn’t stop working. We had to be ready to produce as much food and fiber as we could, even with Mother Nature’s threats and an uncertain market looming.

I’m proud of the work American farmers do every day to make sure our nation is not reliant on imported commodities.

I’m also proud that our leaders in Washington are backing a strong farm safety net with tools like crop insurance.

Crop insurance is a big part of the reason farmers are able to go to work every season despite storms and droughts and faltering commodity markets.

We are proud to provide a critical risk management tool. Crop insurance helps America’s farmers and ranchers produce the affordable and reliable food, fuel and fiber necessary to keep our nation moving forward.

Congress continues to support crop insurance as a cornerstone of the farm safety net and farmers invest their own money in crop insurance to protect more than 90 percent of insurable farmland.

Schniers credits crop insurance with keeping him in business this year, writing, “The American farmer is the backbone of this country. And crop insurance is the backbone of the American farmer. It’s what we stand on.”

We could not agree more. We’re proud to stand side-by-side with America’s farmers and ranchers.

Read Schniers’ full op-ed on the importance of crop insurance at the San Angelo Standard-Times.

Wheat Growers Count on Crop Insurance

This year, America’s farmers and ranchers have faced one challenge after another. For wheat farmers in the west and Midwest, their crop is now threatened by severe drought conditions that could contribute to yield reductions or total crop loss.

Thankfully, more than 90 percent of insurable planted acres are protected by crop insurance, including many of America’s more than 47 million acres of wheat.

Without crop insurance, “producers in these drought-stricken areas could lose their crops without any risk protection, which could drive those farming operations out of business,” wrote Dave Milligan, president of the National Association of Wheat Growers, in a recent op-ed for the High Plains Journal.

One wheat farmer in Kansas reported less than one and a half inches of rain in the last year. Others worry about the increased threat from wildfires.

Milligan is a Michigan wheat farmer himself and very familiar with the inherent dangers of farming and the nature of disasters like drought. He wrote that producers need to have reliable access to crop insurance to effectively manage their risks.

Farming is a risky business, and crop insurance is one of the most important policy tools that is relied on to mitigate risk…

As a crucial component for protecting producers and the feasibility of farming, crop insurance provides a risk management tool for unpredictable weather and assists producers in qualifying for the necessary operating loans to produce a crop. With this in consideration, any cuts or reduced access to crop insurance programs could be detrimental to farmers who rely on it to stay in business when disaster strikes.

Crop insurance has been so successful because it relies on a unique partnership between the federal government and the private crop insurance industry. This allows crop insurance to utilize private-sector efficiency to process claims and deliver payments quickly.

As Milligan makes a point of noting, farmers invest their own money into crop insurance:

Crop insurance is such an important policy tool for farmers that they invest their own money to purchase this protection. Farmers spend $3.5 to $4 billion per year to purchase crop insurance and bearing a significant portion of losses through deductibles. The federal government spends less than a quarter of 1% of its budget on farm safety net programs, making this a worthwhile investment to protect the world’s most affordable and safe food supply. Adequate funding of crop insurance should be a high priority for policymakers as agriculture is being hit with low prices, the effects of COVID-19, and other unpredictable disasters.

Milligan also cites the critical role that crop insurance plays in supporting the rural economies that depend on the income generated by farmers and ranchers. Because if America’s farms fail, their communities will be likely to crumble.

We hope that America’s wheat growers experiencing drought will soon see the rain they need. But no matter the storm – or the drought – crop insurance is here for America’s farmers and ranchers.

Maryland Farmer Thankful for Crop Insurance During Uncertain Year

In farming, the future is never certain. It requires trust that a planted seed will sprout and then flourish and hope that weather or market conditions will not upend that year’s crop.

One thing America’s farmers and ranchers did not predict this year: a global health care crisis.

Brooks Clayville grows row crops on his family farm located on the eastern shore of Maryland. Clayville recently authored an op-ed for The Dispatch sharing that, like many farmers, he began 2020 with high hopes before the COVID-19 pandemic took hold.

“Corn and soybean prices, for the first time in a long time, were expected to improve with the resolution to the ongoing trade wars that have hit rural communities hard,” Clayville wrote. “But the COVID-19 pandemic has dramatically interrupted our economy and our food supply chain.”

Every year, Clayville writes, he purchases crop insurance to help protect his crops and ensure that his family farm can survive any challenges that may arise. Including the current pandemic.

Now, more than ever, Clayville believes that crop insurance is an important tool:

Although rural America faces mounting uncertainty related to the COVID-19 pandemic, Mother Nature certainly won’t give anyone a pass this year. Farmers in Maryland and all across America need to maintain the tools that allow them to protect their farms and keep supply chains moving.

The best tool out there for mitigating the risks of weather and prices is the public-private partnership of crop insurance…

Farming is an expensive and risky business. Farmers have to buy all of the inputs that go into growing a successful crop before they know what the final harvest prices will be and without knowing whether a big storm is going to ruin all of their hard work or whether a pandemic will create new challenges that we didn’t plan for this planting season.

And Clayville is concerned not only about the farmers growing our crops, but the rural economies and small-town jobs that are supported by agriculture:

I think about the banks and equipment dealers, hardware stores and grocery stores in my town. If farmers weren’t spending money on Main Street, we’d have no town keeping our rural economies alive and grocery stores stocked is critically important.

The bottom line: farmers require the strong farm safety net provided by crop insurance to provide certainty as they navigate an uncertain world and continue their essential work of feeding and fueling America.

Crop Insurance Protects Essential Food and Fiber Supply

Steve Ward talks to as many lawmakers as he can about farming. Specifically, growing cranberries.

Ward grew up helping his dad on the family farm in Massachusetts, building cranberry bogs and digging ditches. Now, he farms that land with his son.

But growing cranberries is extremely labor intensive and carries a large amount of risk, not the least of which is the constant threat from Mother Nature.

Ward recently wrote a letter to the editor of his local paper, the Taunton Gazette, emphasizing the critical role that crop insurance plays in protecting America’s farmers:

At every step in this process, Mother Nature can destroy the crop.

Too much water can erode a bog. Not enough water can stress the plant. Hail can destroy berries and flowers in minutes. Fire worms can chew through a bog and leave what looks like ashes in their wake.

You can be left with no crops, no income to cover all the input costs and no money to grow again next season.

That’s why the strong farm safety net of crop insurance helps me sleep at night. I would not be in business without crop insurance.

The public-private partnership of crop insurance means farmers get financial help fast after a disaster. It allows them to stay in business and continue to produce the food, fiber and fuel that are essential to our nation’s safety and security.

Crop insurance saved me. I would not be in business without it.

Our farmers and ranchers have continued to work day-in and day-out throughout this pandemic to provide Americans with a safe and affordable food supply. Let’s ensure we continue to provide the protection they need by supporting a strong crop insurance program.

Crop Insurance an Essential Part of Farmers’ Hurricane Preparedness Kits

June 1 marked the beginning of hurricane season in the Atlantic Ocean and its already off to a roaring start. One month in and three named storms have already affected the United States – two of those storms formed before the season even officially began.

Most recently, Tropical Storm Cristobal made landfall in Louisiana, and it will very likely be far from the last storm this year. In fact, the National Oceanic and Atmospheric Administration is predicting a 60 percent chance of an above-normal hurricane season.

For those farming in the Gulf and Atlantic states, a hurricane could destroy everything they’ve worked to grow or care for in just one catastrophic event.

But after the floodwaters recede and the winds die down, America’s crop insurance industry will be there to help set them on the road to recovery.

Just as we were there when Irene destroyed Cash Ruane’s corn crop in 2011.

By the time Hurricane Irene reached the picturesque mountains of Vermont, she was only a Tropical Storm but her capacity for destruction was unmatched. Historic flooding left water on Ruane’s fields for more than four days and at one point threatened his cow herd.

Thankfully, Ruane had purchased crop insurance, as he always does, and immediately called his crop insurance agent.

“I had my indemnity payment within 10 days to two weeks,” he said. “I was impressed, because I was expecting two to three months,” he said.

One crop insurance agent based in Maine recalled the following Spring that for many farmers in New England, “crop insurance was the only thing that saved… them from losing their farms to bankruptcy and instead allowed them to return to their fields.”

We were still there the following year when Hurricane Sandy slammed into the East Coast.

Because the unique partnership created by the Federal crop insurance program is able to leverage private sector efficiencies, adjusters were on the ground in just days to assess damages and indemnity checks arrived in weeks, not months.

And crop insurance helped Justin Price when Florence left his soybean crop a total loss in 2018.

“I had been smart in my decision making, and carried crop insurance, which you know that’s not a salvation but it’s a help.”

We don’t know what this year’s hurricane season will bring, but we know that crop insurance will never leave our farmers or ranchers behind. Not when a pandemic strikes and certainly not when a hurricane hits.

The crop insurance industry is proud to provide an affordable, accessible and personalized safety net to America’s farmers and ranchers.

America’s Farmers Remain Open to Feed America

Chip and Karla Bailey own KC Bailey Orchards in Williamson, New York, where they grow apples. They’re proud to help provide for their neighbors as well as customers across America, especially during the COVID-19 pandemic.

The past few months have resulted in some dramatic changes in our daily lives, but for America’s farmers, like the Baileys, there are still crops to be planted, fields to be fertilized and apple trees to be pruned.

The Baileys recently wrote an op-ed published in their local paper, the Times of Wayne County, talking about the essential work America’s farmers and ranchers continue to perform at this critical moment:

This crisis has demonstrated the importance of supporting our farmers and ensuring that we have a stable, safe and affordable food supply.

But with farming comes immense risk. The Baileys write that they are always dealing with weather threats. Hail and frost are not only hard to plan for, but they can be devastating to an apple crop.

That’s why they purchase crop insurance. The Baileys consider crop insurance a fundamental part of the farm safety net and are asking Congress to continue to support this important program:

Farming is our passion. As first-generation farmers, we know the difficulties that come with growing food. The COVID-19 virus has created more challenges and that’s why we are thankful for the steps that Congress has taken to help support rural America by passing aid packages with help earmarked for farmers.

However, it’s important that Congress also support, long-term, the farm policies that assist our family farm and allow us to survive even the difficult years.

That includes tools such as crop insurance.

America’s farmers are still farming. Let’s make sure they have the tools they need.

 

NY Apple Farmer: Hope Has Not Been Cancelled

A family apple farm in New York is reminding America that farmers are still out there growing essential food, fiber and fuel.

Chip and Carla Bailey produced a video at their KC Bailey Orchard in Williamson, NY, with a simple message: Hope has not been cancelled.

“Because of COVID-19 a lot of things have been shut down and cancelled across America,” Chip Bailey said. “But on the farm, springtime is not cancelled.”

The video features the family hard at work pruning, fertilizing and planting trees to get ready for the spring.

The apples they grow are an important and nourishing food source for many communities. The family is proud to grow food for their neighbors right in New York and customers across America.

Their son, Josh, had to leave college after classes were cancelled but he’s happy to be back on the farm helping out.

“I’m able to work on the farm and I think that’s a great opportunity to be back with the team and keep contributing any way I can,” he says.

The Baileys were featured in a video story National Crop Insurance Services produced last year about how crop insurance helps family farms and allows them to survive the difficult years.

“Unfortunately, so many things have been cancelled but America we are growing the food for you,” Chip Bailey says. “And just remember that hope has not been cancelled.”

We couldn’t agree more.

Crop Insurance Backs Farmers During Unprecedented Uncertainty

Crop insurance has been there for rural America through the many uncertainties that farmers and ranchers face every single day. It’s helped agricultural producers survive droughts, tornados, blizzards, floods, low prices, prevented plantings and even volcanos.

Still, over the past few months, the COVID-19 pandemic has introduced new and unprecedented challenges as farmers navigate supply chain disruptions and try to predict how this crisis will affect demand for the products they raise. Yet, despite these difficulties, farmers continue their essential work to feed, clothe and fuel our nation.

So, we have no doubt that we will weather this storm, together, as well.

Crop insurance helps manage some of the risk that farmers still face. Because Mother Nature does not abide by stay-at-home orders and droughts, floods and freezes will inevitably occur, regardless of the pandemic.

Now more than ever, as farmers are planting their crops while facing an unpredictable future, crop insurance is a familiar tool, with a track record of success, that farmers can rely on as they work to feed America and the world. And we are proud to be a trusted partner to so many famers across the country, protecting more than 90 percent of planted acres.

Crop insurers, agents and our partners at USDA have been hard at work to support our producers and we are proud to maintain our incredible record of service to the America farmer during these uncertain times.

We are so grateful for rural America’s tireless commitment to ensuring that we have safe, affordable and nourishing food to provide for our families. That’s why, through this pandemic –  and all storms large and small – we’ve got your back.

Crop Insurance Protects Rural America, Solidifies Popularity as Risk-Management Tool

Crop insurance proved to be a critical risk-management tool for America’s farmers in 2019, keeping rural America afloat during what was one of the most difficult years in recent memory. Crop insurance policies protected a record 380 million acres of land, or more than 90 percent of planted acres.

In his opening remarks today at the crop insurance industry’s annual meeting, Jim Korin, chairman of National Crop Insurance Services (NCIS) and president of NAU Country Insurance Company, credited crop insurance’s integral role in the farm safety net for its increasing popularity.

“Despite the financial challenges that rural America has faced over the past several years, farmers continue to invest in the reliable crop insurance products we provide,” Korin said. “This is a testament to our industry’s record of service as well as the trust farmers place in us to provide assistance with efficiency and integrity when disaster strikes.”

In 2019, farmers purchased 1.1 million crop insurance policies, collectively paying $3.75 billion in premiums and shouldering more than $10 billion in deductibles.

As disasters threatened both planting and harvest across the heartland, the crop insurance industry acted quickly to deliver aid. As of Feb. 10, 2020, the crop insurance industry has already paid more than $9.15 billion in crop insurance indemnities to help farmers cope with their losses, and this number is expected to grow as claims are finalized.

“The fact is, corn fields and cow herds can’t survive on political promises,” Korin said. “Farmers can’t wait for politicians to fight over the details of what they deserve when their farm and their livelihood is on the line.”

Mike Davenport, chairman of the American Association of Crop Insurers and Chief Operating Officer of Rain and Hail LLC, a Chubb Company, also addressed the convention and asserted that crop insurance delivered as promised to farmers.

“We have indeed helped farmers and ranchers manage a challenging year by processing claims and getting payments out the door quickly. It underscores why private-sector delivery is such an integral part of the program and it demonstrates that crop insurance works,” Davenport said.

Both Korin and Davenport praised the wide availability of crop insurance, noting that the program protects the vast diversity of food, fuel and fiber production across the United States.

Korin concluded his remarks by pledging that the industry will continue its efforts to strengthen crop insurance, saying: “We will always work to ensure crop insurance remains affordable, widely available and economically viable.”

Crop Insurers: Proposed OMB Budget Undermines Farm Safety Net

The Office of Management and Budget (OMB) today released a proposed Fiscal Year 2021 budget that includes steep cuts to the Department of Agriculture and federal crop insurance.

The American Association of Crop Insurers, Crop Insurance and Reinsurance Bureau, Crop Insurance Professionals Association, Independent Insurance Agents and Brokers of America, National Association of Professional Insurance Agents, and National Crop Insurance Services released the following joint statement in response:

“Last year brought unprecedented challenges for rural America. Even now, farmers and ranchers across the country are dealing with the lingering consequences of weather events that destroyed fields and ruined crops. And there looks to be no reprieve from the ongoing rural recession: The USDA estimates that farm cash flow will tighten this year, dropping more than $10 billion, or 9 percent, from 2019.

“The federal crop insurance program reacted quickly and efficiently to keep many farmers afloat during this difficult time. It’s no wonder then that the nation’s farm organizations teamed up in late 2019 to ask Congress to reject any attempts to cut crop insurance and weaken the farm safety net when it’s needed most.

“It’s inexplicable as to why OMB would target such a critical risk-management tool for budget cuts. The proposed cuts will make crop insurance unaffordable and unavailable for farmers, seriously undermining the farm safety net.

“The crop insurance program works for farmers and taxpayers alike:

  • Crop insurance protects more than 90 percent of America’s planted crop land acres.
  • Farmers invest in their own protection by spending $3.5 to $4 billion per year to purchase crop insurance and bearing a significant portion of losses through deductibles.
  • Crop insurance policies provide critical collateral to farm bank and credit lenders who assist farmers through operating loans, especially during a time of low commodity prices.
  • The federal government spends less than a quarter of 1% of its budget on the farm safety net, including crop insurance, making this a worthwhile investment to protect the world’s most affordable and safe food and fiber supply.

“Thankfully, for the sake of America’s struggling farmers and ranchers, OMB’s budget is sure to be rejected by Congress. We urge the White House and Congress to support America’s farmers and ranchers by protecting and strengthening crop insurance.”

Investing in the Future of Agriculture

National Crop Insurance Services is proud to invest in the future of agriculture through the NCIS 1890 Scholarship Program. NCIS awards scholarships to students majoring in agriculture-related disciplines at historically-black 1890 Land Grant Universities.

Scholarship recipients are driven students with strong academic records. Their accomplishments are not constrained to the classroom and students have a dedicated record of service to their communities.

These awards not only help deserving students complete their education, they promote diversity in agriculture in recognition of the wide range of farmers NCIS serves.

NCIS is proud to introduce the exceptional young men and women who have been named this year’s recipients of the NCIS 1890 Scholarship Program.

Celina Bowman is from Woodbridge, Virginia, and attends Alabama Agricultural and Mechanical University. Bowman is majoring in Family and Consumer Science with a concentration in General Dietetics with the goal of becoming a Registered Dietitian Nutritionist.

 

A’ysha Callahan is from a low-income neighborhood in Waukegan, Illinois, and is majoring in Food Science at Alabama A&M University. She is dedicated to helping people in poor communities improve their lives by improving their diets.

 

 

Myles Davis is from Kansas City, Missouri, attending the University of Arkansas at Pine Bluff. Davis is majoring in Agricultural Business and one day he would like to help reduce food insecurity in low-income urban areas.

 

 

Morgan Green is from Houston, Texas, and the first member of her immediate family to attend college. She is an Animal Science major at Prairie View A&M University and would like to continue her education to become a veterinarian.

 

Kevin H. Holmes Jr. is from Marianna, Arkansas, and is pursuing a degree in Agricultural Business at the University of Arkansas at Pine Bluff.  Holmes grew up working on the family farm and would like to use his degree to help his family succeed on the farm.

New York Dairy Farmer Thanks Crop Insurance

Dairy farmer Steve Durfee milks about 1,000 cows at his farm in upstate New York. It’s a family operation, started by Durfee’s grandparents in the 1940s after they lost everything during the Dust Bowl in Nebraska and moved east to start again.

Now, if anything were to happen on Durfee’s farm, he has peace of mind knowing that his crop insurance policy will help protect his family and give them the opportunity to rebound.

Durfee shared his experience with crop insurance in a recent guest column he wrote for the Madison County Courier:

When I think back to the challenges my grandparents faced as they packed up and left Nebraska, it reminds me just how much farming has changed. I think they’d be surprised and pleased at how successful our family farm has become.

We wouldn’t have been as successful without a strong farm safety net. The centerpiece of that safety net is the public-private partnership of crop insurance.

I recently invited representatives from the crop insurance industry to my farm to tell my story and show them how we use crop insurance to manage the weather and price risks that, for my grandparents, were nearly unmanageable.

The large investment required for each acre we plant makes crop insurance a must. Buying insurance helps take out some of the risk on those acres.

As Durfee notes, farmers would rather sell their products on the market than file an insurance claim. Thankfully, crop insurance helps America’s farmers and ranchers pick up the pieces when disaster strikes, ensuring they can continue providing our nation with food, fuel and fiber.

He concluded his column by urging Congress to keep families like his in mind as they discuss protecting and strengthening farm policy.

I’d like to thank Congress and the American public for backing a strong system of crop insurance in the Farm Bill. As the political cycle heats up and we head toward the 2020 elections, I hope policymakers will remember just how important crop insurance has become to rural America.

Find more first-hand stories highlighting the importance of crop insurance at CropInsuranceinAmerica.org.

Giving Thanks for Our Farmers

This Thursday as you gather around the Thanksgiving table with your family and friends, we hope you pause for a moment to give thanks for America’s farmers and ranchers.

Our farmers work long hours all year long to make the Thanksgiving bounty we enjoy possible.

And farmers are thankful for the Federal crop insurance program.

Crop insurance protects the corn and peas on your table, sweet potatoes in the casserole, pecans and sugar in the pie, even the cranberries in the sauce. The farmer who raised the centerpiece turkey may have protected the land that bird foraged with crop insurance, too.

In total, more than 100 crops are covered by the Federal crop insurance program.

More than one million crop insurance policies protect 90 percent of farmland, providing a dependable risk management tool for farmers of all sizes and many of the foods found at your table, no matter your Thanksgiving tradition.

Producing these crops carries with them a huge amount of risk. Especially in years like these, where weather made planting difficult and harvest impossible for some farmers. Some farmers may not survive what has been an exceptionally tough year. But many others will be able to plant again next spring, thanks to the safety net provided by crop insurance.

Farmers are grateful the Federal crop insurance program gives them an opportunity to invest in their own protection. Farmers and ranchers are required to help fund the crop insurance program, spending $3.5 – 4 billion annually on premiums alone and shouldering billions more in deductible losses.

But crop insurance gives farmers a fighting chance against unpredictable dangers that could jeopardize an entire farm’s future in a moment.

And since it’s run in partnership with the private-sector, farmers do not fear having aid held up by a slow political process. They receive aid in weeks – not years – for their verified losses.

So, as we enter into this season of gratitude, take a moment to celebrate the hard work and dedication that goes into producing America’s food.

Crop Insurance Receives Bipartisan Praise

Autumn is here and most of America’s farmers are in the full swing of harvest. As farmers are working long hours in the field, legislators on Capitol Hill are tackling a different kind of challenge: implementation of the 2018 Farm Bill.

The 2018 Farm Bill was passed last December and included key provisions to strengthen crop insurance and solidify its position as the most important risk management tool for farmers.

The Senate Agriculture, Nutrition, and Forestry Committee recently held a hearing where Deputy Secretary of Agriculture Stephen Censky provided an update to senators on the USDA’s progress on implementation of the legislation.

With crop insurance being a critical program for rural America, it is no surprise that it received praise from both sides of the aisle during the hearing.

During his opening statement, Censky applauded the federal crop insurance program, saying that it “has been a vital part of the farm safety net.”

Censky also noted “key provisions related to veteran farmers and ranchers have been implemented that made crop insurance more affordable and with more robust coverage.”

National Crop Insurance Services previously commended Congress for including provisions in the Farm Bill to expand crop insurance to veteran farmers. This will help expand the farm safety net to traditionally underserved communities and give veterans the tools they need to effectively manage their farming risks.

Committee Chairman Senator Pat Roberts (R-KS), also touted the crop insurance program, particularly during what has been a difficult year for farming.

“This fall, as producers are trying to harvest their crops, challenges have continued just this past week,” Roberts said. “The 2018 Farm Bill does provide important risk management tools such as crop insurance to mitigate the risk and losses from these unpredictable weather-related events.”

Ranking member Senator Debbie Stabenow (D-MI) joined in the bipartisan praise, noting that the 2018 Farm Bill “recognizes the diversity of American agriculture” and expands access to the federal crop insurance program for new crops and types of production.

All told, the crop insurance program provides a dependable risk management tool for a wide variety of crops and farmers of all sizes. More than one million crop insurance policies protect 90 percent of farmland. It also covers more than 100 crops, a fact that was cited by Senator John Boozman (R-AR) during his line of questioning.

“Crop insurance is certainly a cornerstone of reform policy, provides crucial risk management tools for producers and covers well over 100 crops,” Boozman said.

With such high praise, it’s easy to see why Congress strengthened crop insurance in the 2018 Farm Bill.

As America’s farmers harvest this year’s crop and prepare to sow again in the spring, they know that they can depend on the affordable and reliable safety net provided by crop insurance.

New York Farmers Rely on Crop Insurance to Manage Risk

Apple farmer and agri-tourism business owner Matthew Critz got up on New Year’s morning last year to a beautiful winter day in central New York.

Not a cloud in the sky. Wall-to-wall sunshine.

“I look outside at the thermometer and it says 30 below,” he recalled. “And it’s even colder in my orchard. We lost 70 percent of our crop in about three hours that morning.”

Without apples, his business would die. Critz Farms, in Cazenovia, is an easy drive from Syracuse and attracts about 70,000 visitors a year. He sells apples, blueberries, maple syrup and Christmas trees along with brewing beer and hard cider.

“If we don’t have apples, people don’t come,” he says.

Crop insurance saved Critz last year and allowed him to purchase enough apples to make up for the shortfall caused by Mother Nature.

“It did provide quite a good cushion for us,” he says.

National Crop Insurance Services visited farms across central New York as part of our mission to tell the first-hand stories of the farmers and ranchers who rely on the safety net provided by the federal crop insurance program.

Dairy farmer Steve Durfee in Chittenango says the large investment required for each acre he plants makes crop insurance a must. He has about 1,000 milk cows, grows corn and wheat and runs a small vegetable stand mostly for the surrounding neighborhood.

“Buying insurance helps take out some of the risk,” he says. “Last year just looking at what the price of milk was and saying if it continues at this level, it would certainly put a lot of stress on our finances.”

He bought a dairy revenue protection policy to help mitigate the risk of the volatile dairy market. Fortunately, the price of milk rebounded, and he didn’t need to use the insurance.

Like all farmers, Durfee would rather sell his products at a good price than make an insurance claim.

“Crop insurance is just like all the other insurance you have,” he says. “We end up spending a lot of money on insurance, but you can sleep at night knowing if something happens, you are going to be protected partially and you will be able to rebound from it and continue on.”

Down the road in Wolcott, that peace-of-mind is something Alicia Abendroth understands. She runs Abendroth’s Apple Ridge Orchard with her brother and father. They’ve been in business about 6 years.

“For my brother and I, this is a huge deal and we want to grow this,” she says.

As a young farmer, and a young family business, protecting the investment they make in each apple tree is critical to make sure the business grows.

Hail in August this year damaged a crop of early apples right before harvest.

“When something like that happens, there is nothing you can do,” she says. “You just kind of watch it fall. We utilize crop insurance when incidents like that happen that are completely beyond our control. And we are thankful we have it because it’s saved our lives. Crop insurance has helped my dad sleep better at night.”

Central New York is a wonderful place to farm with generally good growing conditions and easy access to large populations of consumers. But here, like the rest of America’s farm country, Mother Nature can be unforgiving.

Back in Cazenovia, that’s something Matthew Critz says he never forgets.

“Your worst risk is weather,” he says. “And if you can cushion that risk with crop insurance, you gotta do it because farming is such a risky business.”

View more stories from across the country at ncis.staging.wpengine.com.

Crop Insurance Helps Pennsylvania Farmer Manage Risk

National Crop Insurance Services recently visited the Grove City, Pennsylvania, farm of John Ligo to discuss how the farm safety net has helped protect his farm against risk. A farmer by choice, Ligo worked in the financial industry before he and his wife purchased their farm in 1988. Now, they produce farm-to-table beef, raising approximately 600 cattle and growing about 400 acres of corn alongside 600 acres of grass and rangeland.

Ligo recently published an op-ed in the Pennsylvania publication Lancaster Farming praising the Federal crop insurance program, an excerpt of which is below:

I’m a farmer because it gives me a chance to shape the land. I can shape my business and my reputation and build my ethic to that picture in my mind of how things should be.

 I don’t know what else I could do besides farming to create that. It’s not always easy, and it’s full of risks, but I love it.

 The risk in farming is part of the landscape. It comes with the job.

 Some risks are controllable, and some are not. We always have risks of health, for the farmer and the livestock. We have risks in weather, which can somewhat be mitigated by our practices, and sometimes not.

 One of those things we can do to manage crop production risks is crop insurance. Crop insurance allows me to expect at least a bottom-line income.

 Last year we had 40 inches of rain here. By June 10, I was short a hundred acres of what I intended to plant. Crop insurance helped me with that.

 There have been years when the sunshine just didn’t bring it to us, and crop yields were low. Crop insurance helped me then, too.

 There are years, occasionally, when we have a drought and grass production is just not what it should be, and feed is hard to buy. A pasture rangeland forage policy through crop insurance helped me during the droughts and I was able to continue doing what I am doing.

 I know my risks are at least covered to a certain extent with crop insurance.

Ligo concluded his op-ed by thanking Congress for expanding crop insurance in the 2018 Farm Bill and calling on lawmakers to ensure crop insurance remains affordable and widely available in future policy debates. Because without crop insurance, farmers like John Ligo would be unable to provide America with the safe, affordable and high-quality products that feed our nation.

House Crop Insurance Caucus Shares Importance of Farm Safety Net

Congressional staff filled a hearing room on Capitol Hill last week for the official launch of the bipartisan House Crop Insurance Caucus, hosted by co-chairs Cheri Bustos (D-Ill.) and Glenn “GT” Thompson (R-Pa.).

The House Crop Insurance Caucus will work to share with lawmakers the benefits of crop insurance and demonstrate how this program helps our farmers endure hardship by mitigating their risks.

Bustos has seen first-hand how crop insurance can be a lifeline for farmers devastated by unexpected weather events. Her Illinois district was hit hard by the extreme weather that inundated the Midwest this spring. “Our growers and producers are hurting,” she said. “Our family farmers are hurting.”

“This bipartisan Crop Insurance Caucus will work arm-in-arm to educate other members about the importance of a strong farm safety net and agricultural economy,” Bustos said.

Thompson made it clear what’s at stake when it comes to protecting the Federal crop insurance program. “Having crop insurance is incredibly important,” Thompson said. “We know that agriculture is really about food security. And food security is really about national security.”

This briefing was just the first of many, as the caucus hopes to be an accessible resource for Congress and an avenue to encourage bipartisan collaboration to strengthen the Federal crop insurance program.

“This caucus aims to educate our colleagues and educate the general public on the importance and value of crop insurance.” Thompson explained. “It all starts today.”

Farmers and agriculture lenders also spoke alongside the members of Congress, sharing their personal experiences with crop insurance.

Illinois farmer Ron Moore discussed how the impact of crop insurance extends beyond individual farmers to the local economies that rely on the income generated by agriculture. “Crop insurance is a valuable tool that we have as farmers. It’s imperative that we continue to preserve that tool because it not only helps me as a farmer, but it also helps my community,” Moore said.

Heather Greenwalt, Assistant Vice President at Farm Credit Illinois, remembered the 2012 drought and the role crop insurance played in preserving family farms across the Midwest. It was a beautiful spring and all of the local farmers were so proud of what they were able to accomplish in the field, she recalled. Until one day it just stopped raining. It was the worst drought since the Dust Bowl.

But the farm safety net worked as it was designed. Private crop insurance companies worked efficiently to deliver aid to farmers, saving tens of thousands of jobs along with taxpayer money.

“Crop insurance in 2012 was the difference in people staying in the agriculture industry in 2013,” Greenwalt said. “And crop insurance is again in 2019 going to be a major and crucial risk management tool for many farmers and producers.”

Risk is an intrinsic part of farming and producers are always calculating the variables that can impact crop production or their herd. But Greenwalt knows that when disaster strikes, the farmers she serves can find comfort in knowing that crop insurance gives them options for relief.

Greenwalt added, “As an agent and as a farmer, a strong crop insurance program means for a strong rural economy and a strong food supply for our nation.”

Learn more about how the Federal crop insurance program works by watching our brand new Crop Insurance 101 video or visiting CropInsurance101.org.

National Crop Insurance Services Launches New Website to Educate Public, Policymakers on Importance of Crop Insurance

Our nation’s farmers and ranchers face unpredictable hazards, many of which can destroy a hard-earned livelihood in moments. Thankfully, farmers can count on crop insurance to help them navigate these risks and protect their operation should disaster strike.

However, the continued success of crop insurance depends on keeping the program affordable, widely available, and economically viable. And that starts with educating both the public and policymakers as to the important role crop insurance plays in the farm safety net.

National Crop Insurance Services (NCIS) has launched a new website at CropInsurance101.org that aims to be an easily-accessible resource where visitors can learn more about the history of crop insurance, download fact sheets, or find a glossary of common terms. As part of this initiative, NCIS also debuted a new Crop Insurance 101 video that explains how crop insurance works.

The Crop Insurance 101 website was officially launched at a congressional briefing today hosted by the new House Crop Insurance Caucus.

Created by Reps. Cheri Bustos (D-Ill.) and Glenn “GT” Thompson (R-Pa.), this bipartisan caucus will provide a forum for all members to learn more about the value of the public-private partnership that makes crop insurance unique while encouraging bipartisan collaboration to strengthen this program for rural America.

Members of the caucus include: Reps. Cindy Axne (D-Iowa), Mike Bost (R-Ill.), Salud Carbajal (D-Calif.), TJ Cox (D-Calif.), Angie Craig (D-Minn.), Rodney Davis (R-Ill.), Alcee Hastings (D-Fla.), Dave Loebsack (D-Iowa), and Jefferson Van Drew (D-N.J.).

Illinois farmer Ron Moore provided congressional staff at the briefing with a first-hand perspective of the importance of crop insurance.

“The crop insurance program is a critical tool to protect against the risks that come with farming,” Moore said. “As the rural economy faces another tough year, it is encouraging to see members of Congress from both sides of the aisle come together to stand up for America’s farmers.”

And with crop insurance policies protecting nine out of every 10 planted acres of principle crops, crop insurance does more than provide economic security – it safeguards our nation’s food and fiber supply.

Learn more about how crop insurance works for both farmers and taxpayers alike by visiting CropInsurance101.org.

How Does Crop Insurance Impact Your State?

Crop insurance is a cornerstone of U.S. farm policy.

But what does that really mean for America’s farmers?

To put it all into perspective, National Crop Insurance Services has highlighted the state-by-state impacts of crop insurance at CropInsuranceInMyState.org.

There you can find individual fact sheets that illustrate the unique significance of agriculture in each state.

It’s probably to be expected that oranges are a staple in Florida, but did you know that New Jersey can thank tomatoes for being the largest agricultural contributor to the Garden State’s economy? Idaho might be famous for their potatoes, but potatoes lead the list of top crops for Maine as well.

And the federal crop insurance program helps these crops drive the economy by providing an invaluable safety net for those farmers and ranchers harvesting oranges, tomatoes, potatoes and the more than 100 additional covered crops.

Everything is bigger in Texas, and with 38 million acres protected by crop insurance, they come in at number one in acres covered. But corn-production powerhouse Iowa can boast the highest value of crops covered by federal crop insurance, with nearly $12 billion in protection.

And because crop insurance requires farmers, private insurance companies, and the federal government to share the burden of risk, each fact sheet outlines how much farmers and insurers invested into the federal crop insurance program through premiums and indemnities.

In total, federal crop insurance protects more than $100 billion worth of crops across more than 300 million acres in all 50 states.

Visit CropInsuranceInMyState.org to download a fact sheet for your state and view first-hand testimonials from the farmers and ranchers who rely on this valuable risk management tool.

Pennsylvania Farmers Consider Crop Insurance a Must-Have Tool

Brian Campbell always knew he wanted to be a farmer. He started a produce stand when he was just 14 years old. Now, his Pennsylvania farm produces mostly vegetables, including broccoli, sweet corn, lettuce and pumpkins.

But weather can be unpredictable in the Northeast, and his farm has seen challenges. In 2011, a severe flood wiped out approximately 50 percent of his expected revenue for that year. Banks no longer wanted to do business with him and he had to dig deep to recover.

Thankfully, the introduction of the Whole Farm Revenue Protection program with the passage of the 2014 Farm Bill allowed Campbell to adequately insure his diverse crops against risk.  

National Crop Insurance Services visited Brian Campbell Farms as part of our mission to tell the first-hand stories of the farmers and ranchers who rely on the safety net provided by the federal crop insurance program.

Campbell credits crop insurance for his growing success, saying, “If it wasn’t for whole farm revenue protection today, you know, I may not be at the size that I am.”  

And he’s always looking forward to the next year, “I love what I do. It’s a passion. I really enjoy it.”

For family farmer Dave Clark, farming is also a passion that he just couldn’t shake. He briefly tried working off the farm but returned to his roots in 2001 when he and his wife purchased the family farm in Huntingdon County, Pennsylvania.

“I always say it’s in your blood. I love farming,” Clark says.

Clark considers crop insurance a must-have business tool. He relies on crop insurance to help protect his farm against the inherent risks that come with putting your faith in weather to grow your crops and a favorable market in which to sell them.

As John Ligo says, “Risk in farming is part of the landscape. The risks that we face, some are controllable, and some are not.” But he emphasizes that one way to help mitigate these risks is to purchase crop insurance.

His farm in Grove City, Pennsylvania is home to approximately 600 head of cattle and he grows about 400 acres of corn alongside 600 acres of grass and rangeland.

Last year, Ligo’s farm saw 40 inches of rain and by early June he was short 100 acres of what he intended to plant. Crop insurance helped his farm survive. During those years when drought hindered grass production, crop insurance helped him then, too.

“It does change the way I farm, knowing that my risks are at least covered to a certain extent,” Ligo says.

Third-generation dairy farmer Billy Smith feels deeply connected to his family legacy of farming.  

“I feel that it’s our God-given right here to take care of this land,” he says. “I feel that we’ve been blessed in many ways. You know, it’s our livelihood.”

He’s had to file a couple of crop insurance claims. But knowing that this valuable federal program exists helps ease the worries that come with farming. By reducing some of the risks that can arise on his farm, crop insurance allows him to better plan for the future.

“It’s always there to back us up whenever we need it.”

View more stories from across the country at cropinsuranceinmystate.org.

Congressional Testimony Touts Benefits of Crop Insurance

Farmers across the country know first-hand the critical role the federal crop insurance program plays in protecting our nation’s supply of food and fiber. It’s an important risk management tool that supports both America’s farming communities and the rural economies that rely on them.

Michael Davenport, COO of Rain and Hail and Chairman of the American Association of Crop Insurers, brought this positive message to Capitol Hill today when he testified before the House Agriculture Committee’s Subcommittee on General Farm Commodities and Risk Management.

Davenport’s testimony highlighted the unique public-private partnership that allows crop insurance to be flexible, affordable, available, and predictable.

By offering a variety of insurance products, federal crop insurance provides growers with dependable coverage options that fit the requirements of their individual farm. And with new investments in technology and a continuous focus on high-quality customer service, private crop insurers can quickly process claims while keeping costs manageable.

The 2018 Farm Bill helped strengthen the federal crop insurance program, and Davenport thanked the committee for investing in the American farmer.

“With the continued bipartisan support for the public-private partnership crop insurance provides, farmers are able to receive a reliable and cost-efficient safety net to protect both themselves and the future of farming,” Davenport testified.

The overwhelming success of crop insurance has made it the cornerstone of the federal farm safety net. More than 1 million federal crop insurance policies provide more than $100 billion in coverage across 300 million acres of farmland in all 50 states.

“The bottom line is that the crop insurance program is successfully meeting the needs of thousands of farmers who can tailor their risk management needs to serve them best with the help of a local agent,” Davenport said.

And as farmers face significant challenges this year, Davenport emphasized to the committee that the private crop insurance industry is standing ready to provide timely assistance and “fulfill the promises of the Federal Crop Insurance Program to each and every farmer who purchased a policy.”

Farming can be unpredictable. But the federal crop insurance program provides a reliable safety net that benefits farmers and taxpayers alike.

Farm Bill Expands Crop Insurance for Young, Veteran Farmers

The future of farming depends on the next generation taking up the plow, so to speak. But the barriers to entry can be prohibitive – and prohibitively expensive.

Costs for necessary items such as machinery, seeds, or land are high and add up quickly. Not to mention it can be difficult to obtain lines of credit in the first place without access to substantial capital or insurance giving banks the peace of mind that farmers will be able to repay loans.

And all of that sweat and equity could be wiped out in the time it takes a tornado to touch down or floodwaters to rise.

Thankfully, federal crop insurance provides a valuable safety net.

Farming can be an especially daunting task for those that are a part of traditionally underserved communities, such as beginning farmers or veterans.

Many of these farmers tend to lack the equity and liquid assets necessary to begin farming, and therefore rely on loans. And most lenders require crop insurance coverage to act as a backstop should disaster strike.

Congress recognized the importance of supporting these farmers and took steps to increase their access to crop insurance with the 2018 Farm Bill.

Legislators expanded premium discounts for Whole Farm Revenue Protection (WFRP) policies to those with ten years or less farming experience. Twenty-seven percent of American farmers fell into this category during the 2017 Census of Agriculture.

In addition, the Farm Bill reduced regulatory burdens for those with WFRP policies by allowing waivers for expanding operations, especially for small and beginning farmers, reducing record keeping requirements for small farmers and minimizing paperwork.

USDA data indicates that the rural population of post-9/11 veterans is growing quickly and provisions in the 2018 Farm Bill seek to increase access for those veterans who wish to enter farming. Congress included veteran farmers and ranchers as part of a new definition of underserved producers, allowing them to take advantage of improved crop insurance benefits such as additional premium discounts.

And the Farm Bill mandated that the Risk Management Agency produce an Underserved Producer Report every three years in order to continue identifying ways the federal government can reform and improve these programs in order to increase participation and better serve these communities.

In total, these reforms will help give new and veteran farmers the tools they need to effectively manage their risks.

National Crop Insurance Services recently spoke with young Iowa farmer Colin Johnson who emphasized the important role crop insurance plays in ensuring he can continue farming, saying that he “probably wouldn’t have lasted two years without… crop insurance support.”

Farming can be difficult. But access to affordable and dependable crop insurance will help pave the way for future generations of American farmers.

Crop Insurance Supports Penn. Farmers in Lean Times

Scott Bowser runs a dairy farm about an hour and a half north of Pittsburgh in western Pennsylvania’s famous farm country.

His dad bought the farm when he was 6 and started with a herd of 14 cows. It’s grown since then and today, Bowser farms with his wife and youngest daughter, Abby. His oldest daughter would like to come back to the family farm.

Like all dairy farmers in Pennsylvania, and across the nation, he’s felt the impact of tariffs in the international market and low commodity prices.

“You take the good with the bad,” he says. “And everybody knows, the last few years have not been so good.”

But Bowser loves it. And he wants to pass the farm down to his children.

“If you want something for your kids to take over … if that’s something that they really want to do, there has to be something there,” he says.

National Crop Insurance Services recently visited farmers across Pennsylvania to find out how they are managing to keep something here for themselves and the next generation.

Times are tough in the Commonwealth.

The state, second in the nation in dairy, lost 370 farms last year, according to USDA.

Farmers all across Pennsylvania say crop insurance – whether whole farm revenue protection or policies that cover pasture, rangeland and forage – plays a critical role in keeping family operations going.

Down the road from Bowser’s place, Jared Smith is the eight-generation farming his family’s land. He wants to pass it to his children.

“The margins in agriculture are so slim right now that I feel crop insurance gives you a level of security that you are going to have some income off the investment you are making into your crops,” he says.

It helped keep him in business last year when late season rains forced him to leave hay, meant for his cows, standing in the fields.

Bowser agrees. He went 10 years without making a claim until wet years hurt his corn and bean crops.

“Crop insurance is one of those things that when you need it, you need it real bad,” he says. “And you get that check and you’re really glad to see that check coming. You might not be in business if you didn’t have it. The risks are too great.”

Editor’s Note: National Crop Insurance Services is back on the road this year to speak first-hand with farmers, ranchers and insurance adjusters across the country about the unique challenges they face and the importance of crop insurance. The consensus is clear—crop insurance is one tool that farmers simply cannot do without. Watch their stories unfold at cropinsuranceinmystate.org.

Crop Insurance Wins Wide Support on Capitol Hill and In Countryside

Federal crop insurance and the critical role it serves as part of the farm safety net unexpectedly took center stage at a recent Senate Finance hearing with the United States Trade Representative, Robert Lighthizer.

Michigan Senator Debbie Stabenow questioned USTR Lighthizer on the Office of Management and Budget’s (OMB) proposed spending plan for Fiscal Year 2020, which takes aim at the United States Department of Agriculture. OMB suggested making cuts to a popular farm risk management tool: crop insurance.

While this budget is unlikely to ever be adopted by Congress, Senator Stabenow, who is the top Democrat on the Agriculture Committee, rightly noted that cuts to the USDA and crop insurance would be contrary to the policy objectives established by the overwhelmingly bipartisan passage of the Farm Bill in December 2018.

Finance Committee Chairman Chuck Grassley (R-IA) immediately interjected, emphasizing that cutting crop insurance is a non-starter.

“It would gut the program,” the Chairman said of OMB’s proposal, “and that’s the one thing that our farmers and ranchers and growers all over the country said was the number one issue.”

He wasn’t alone in criticizing the plan.  Senate Minority Whip Dick Durbin (D-Ill.) made his objections heard a couple of days earlier.

“More than 310 million farm acres protected by crop insurance would be at risk,” he said of the plan, which he noted, “undermines our farmers.”

And those farmers have been very clear in their message to Capitol Hill to “do no harm” to crop insurance. Some of these farmers reiterated this ask at this week’s Agri-Pulse summit in Washington, D.C.

Luke Howard, an organic farmer from Millington, Maryland, shared how crop insurance helped his farm after a record rainfall last year, stating it was a lifesaver and “a smart use of tax dollars.”

And a first-generation farmer, John Shepherd from Blackstone, Virginia, emphasized that he may not have survived his first few years of farming without the safety net provided by crop insurance.

Their stories and similar testaments from farmers and ranchers are clear.

We simply cannot balance the federal budget on the backs of America’s farmers and ranchers. And agriculture cannot thrive without a strong crop insurance system.