Crop Insurance Protects Farmers from Sea to Shining Sea

As we celebrate America’s independence this weekend, let’s also take a moment to celebrate the incredible farmers and ranchers who feed America. Farmers are key to maintaining our freedom and our food security. 

That is why we work hard to ensure that all farmers have the tools they need to manage their risks and grow the crops that feed, fuel and clothe America. Crop insurance provides an invaluable safety net for farmers in all 50 states – from sea to shining sea. 

How does crop insurance protect your state? Visit CropInsuranceInMyState.org to explore 50 brand-new fact sheets highlighting the state-by-state economic impact of agriculture and the importance of crop insurance.

In total, crop insurance protects more than 440 million acres of American farmland. Each of these acres represent a farming family: some are continuing a long legacy of agriculture, while others are the first generation to farm. Each farm is an integral part of our nation’s food supply and our economy.

We’re proud that crop insurance keeps America growing.

Visit CropInsuranceInMyState.org to download a fact sheet for your state

A Safety Net for our Food Supply and the Farm Economy

Crop insurance is the cornerstone of the American farm safety net. It protects the farmers who grow our food and fiber as well as the rural communities that rely on a thriving farm economy.

Mike Chappell bought his first tractor when he was still in college. Now, he farms in McCrory, Arkansas, and takes pride in growing the crops that feed America.

“I feel like that we bring a good product for people. It feels good to know that, you know, people are consuming our product and we’re working hard,” Mike said. “It’s a lot involved. And I’m just one little spoke in the wheel.”

Farming comes with many challenges, and Mike has experienced some big storms, big floods and big freezes that have become family legend. Each time, he’s turned to crop insurance to keep him growing.

“Crop insurance kind of takes a few bumps out of the road,” he said. “It’s not going to make you prosperous, but it might keep you alive.”

Learn more about the people behind the policies.

Agriculture provides jobs for tens of thousands of people in Arkansas and supports the small businesses that rely on this income. Matthew Marsh in England, Arkansas, grew up farming and understands the immense responsibility of taking care of his employees.

Yet, increasingly severe weather is making it harder for farmers like Matthew. That’s where crop insurance comes in.

“If Mother Nature throws us just a big curveball, we may have something, some way to stay in business and keep our community and all our employees going forward to another year,” Matthew explained.

Just across the mighty Mississippi, agriculture anchors the small town of Clarksdale, Mississippi. The Mississippi Blues Trail winds through Clarksdale, too, and the intersection of farming and folk music give farmer Scott Flowers hope that this community will survive through tough times.

Scott farms cotton, soybeans, corn, and wheat with his brother. When we spoke with him in mid-April, they hadn’t been able to get into the fields to plant nearly half their acres due to the rain. When weather is unpredictable, crop insurance provides a predictable safety net.

Weather isn’t the only risk. Input costs, such as the cost for fertilizer, fuel, and animal feed, are also rising and squeezing already thin farm profits.

“We couldn’t make it without crop insurance,” Scott said. “I mean, we put so much money into the crop that we can’t afford to miss a crop. Or not to have a safety net if we do.”

Watch these stories and more at CropInsuranceInAmerica.org.

Crop Insurance Keeps Family Farms Alive

Jim Carroll, a fourth-generation farmer in Brinkley, Arkansas, is no stranger to the “bad times” that come with farming. Some years, it feels like he’s just trying to survive.

That’s why Jim invests in crop insurance. “We use crop insurance for the fact that if something bad happens, we don’t want to lose our livelihood, not being smart enough to take a little crop insurance out,” he explained in a new video.

Crop insurance helps Jim manage his risks and protect the farm in the hopes that one day, his grandson will take over as the fifth generation. “My hope is he’ll like this because there’s something unique about being able to put a seed in the ground and watch it come up and develop.”

National Crop Insurance Services is dedicated to sharing the stories of the people behind crop insurance policies. Each one is important, whether it’s the farmers who rely on crop insurance to keep growing after disaster or the agents and adjusters who are dedicated to preserving a strong agricultural economy.

Watch more Real Stories here.

Our most recent trip to the field took us to the rich farmland of Arkansas and Mississippi. Tim Ralston in Atkins, Arkansas, farms rice, soybeans, and corn while raising cattle. The jasmine rice he grows is so fragrant, he said “you can actually smell it when you pull into the field.”

Tim recalled a 500-year flood that threatened his farm and damaged his rice. His crop insurance policy quickly delivered aid to help cover his losses.

“Crop insurance kind of provides a safety net to where you know what the minimum return is going to be. And if you can live with that minimum return and then, you know, you can survive and go forward,” Tim said.

“With [crop insurance], you know it was devastating as it was, but without it, it would have been catastrophic.”

Watch these stories and more at CropInsuranceInAmerica.org.

Heard from the Field: Michigan Farmers Share Insights with Senate

Last week, the Senate Agriculture Committee held its first field hearing in preparation for the 2023 Farm Bill. Chairwoman Debbie Stabenow (D-Mich.) and Ranking Member John Boozman (R-Ark.) traveled to Sen. Stabenow’s home state of Michigan to hear from local farmers and other key stakeholders about the farm policies that are key to keeping their farms running and their local communities fed. It is no surprise that crop insurance was a common topic in several of these testimonies.

That’s because farmers are facing many risks, especially as climate-driven loss events increase. Juliette King McAvoy, who grows tart cherries and other specialty crops at King Orchards in Northern Michigan, said that crop insurance helps their family farm deal with the threats posed by volatile spring weather.

“Crop insurance absolutely helps us manage risk,” McAvoy said. “We’ve had increased frequency of crop loss and I cannot imagine trying to survive without it. There are not many business models that can withstand the kind of volatility that we are experiencing.”

McAvoy also said that crop insurance gives her the certainty and the confidence to continue her family’s long-term investment in their orchard. “The crop insurance plans do not make us whole (typical plans insure 60% of a crop), but they are so important to ensure that we can keep the orchards maintained and make it to another season,” she wrote in her submitted testimony.

Allyson Maxwell, co-owner of Peter Maxwell Farms, shared similar sentiments about the importance of a strong crop insurance program.

“The safety net provided by crop insurance is vital to maintaining the agriculture industry in this country, especially in the face of increasingly unpredictable disasters like drought, flood, and extreme weather,” Maxwell said. “It’s a really, really important risk tool that we have…and we’re really grateful for it and the fact that it is protected by our Farm Bill.”

She recalled watching her aunt and uncle almost lose their Missouri farm in the 1980s because they did not have crop insurance. Thankfully, their farm survived, and today, they also rely on crop insurance.

Jake Isley, a 6th generation farmer and soybean grower at Stewardship Farms, stressed to the committee that crop insurance must remain affordable in the 2023 Farm Bill.

“Our risk management program on which soybean farmers and our lenders rely on heavily is crop insurance. We must continue to have an affordable crop insurance program. With input costs higher in every area of my operation, I cannot afford to have the crop insurance premium subsidy reduced in this next Farm Bill,” Isley said.

We’re proud that crop insurance has earned the trust and confidence of Michigan farmers, as Sen. Stabenow noted as well.

“One of the things that came up over and over again is crop insurance, which is so critical, particularly in these times with weather getting worse and worse and worse,” Stabenow said. “Our farmers, they’re not asking for a handout. They want help to make sure there’s a backstop that helps them with their risk.”

The testimony from Michigan’s farmers has made it clear that Congress must continue to support a strong crop insurance program in the 2023 Farm Bill.

Principles for an Effective Farm Safety Net

Crop insurance is the cornerstone of the farm safety net. But why is crop insurance such an effective tool for farmers to manage their risks and recover from crop losses?

Modern crop insurance brings together the efficiencies of a private-sector delivery system with the regulatory oversight and financial support of the government.

Following the farm crisis of the 1980s, a government report prepared for the House Agriculture Committee outlined several principles for an effective farm safety net. Since this report was published, the crop insurance industry and Congress have worked together to strengthen crop insurance and ensure the program meets these principles.

  • Crop insurance provides timely financial assistance to help farmers withstand and recover from crop loss weather events. The public-private partnership between the Federal government and private crop insurers increases efficiency and ensures that aid is delivered quickly. Farmers receive help in just days or weeks.
  • Crop insurance is consistently available to give farmers certainty for long-range planning. When farmers purchase a crop insurance policy, they and their bankers know that they can count on timely assistance should they need it. The U.S. Department of Agriculture (USDA) sets rates and rules for the plans that can be sold by private insurance agents, and farmers purchase the appropriate crop insurance policy for their individual risk.
  • Crop insurance provides assistance as determined by an individual farmer’s actual loss, not by the severity of the overall disaster event. Following a weather disaster, private-sector claims adjusters quickly and accurately assess damages and calculate losses. Delivering aid based on actual losses protects farmers, ranchers, and taxpayers alike.
  • Crop insurance requires that farmers invest in their own protection, ensuring farmers are receiving assistance commensurate with the verified amount of their losses. The Federal crop insurance program requires farmers to invest in their own protection and share in the risk. Last year, America’s farmers collectively paid $5 billion to purchase crop insurance premiums and shouldered losses through deductibles.
  • Crop insurance does not create incentives to encourage farming practices that increase the likelihood and extent of losses. In fact, just the opposite. Following Good Farming Practices is a requirement of each crop insurance policy. These practices are based on sound data, science, and are constantly evolving to keep pace with new technologies and changes in the market, weather, and land management.
  • Crop insurance has predictable costs and is required to be actuarily sound. By law, the amount of money in the crop insurance system over time must be sufficient to meet the cost of paying claims when disasters strike. In other words, the math must work.
  • Crop insurance works efficiently to meet its purpose of improving the economic stability of agriculture while maintaining high levels of program integrity. Working closely with USDA, America’s crop insurers have made program integrity a top priority. Crop insurers have invested millions in data collection, education and training, and new research and technology to better serve America’s farmers.

By consistently fulfilling these principles of an effective farm safety net, crop insurance has given our farmers stability. They overwhelmingly trust crop insurance to help them manage their risks.

Let’s fulfill our promises to America’s farmers by ensuring that crop insurance remains available and affordable. Do no harm to the farm safety net.

NCIS Scholarship Creates a Legacy of Giving Back

For more than a decade, National Crop Insurance Services (NCIS) has invested in fostering the next generation of America’s agricultural community through the NCIS 1890 Scholarship Program.

As George Washington Carver once reminded us, “Since new developments are the products of a creative mind, we must therefore stimulate and encourage that type of mind in every way possible.”

The 1890 Scholarship Program has worked to encourage creative minds by providing funding for four semesters to students with a professional interest in agriculture attending one of the 19 historically black land-grant institutions. It’s an investment in our nation’s farming future, and an investment in our commitment to increase the diversity in the crop insurance industry to reflect the diversity of the farmers it serves.

NCIS has awarded more than 25 scholarships to outstanding students since 2010. This year’s recipients are an exceptional group of young people who excel inside the classroom as well as through extracurricular activities on campus and are committed to giving back to their communities.

Scholarship recipient Samaya Brooks is studying agribusiness at North Carolina A&T State University.

“Agribusiness gives me the opportunity to learn about agriculture, which affects everyone, and help many people,” Samaya shares. “I’m very happy to have the opportunity to research and learn more about what I’m interested in. It has been my goal and dream since high school.”

After graduation, Samaya hopes to pursue a PhD to continue agribusiness research. Ultimately, she would like to use her career in agriculture to help to improve the lifestyle of farmers and protect them from exploitation.

Similarly, Tennessee State University student Tiffani Patterson also wants to use her agricultural career to help others.

“I plan to finish my degree in agricultural sciences and pursue a career in agriculture education. I plan to give back to students as my teachers did and hopefully show them that ag is not just for farm kids, but any kid who wants to learn about agriculture and [has] a passion to pursue it. I was not a farm kid by any means, but I was welcomed with open arms and learned many things I will use for the rest of my life,” Tiffani says.

This year, NCIS awarded a total of five scholarships to students from around the country. Our other deserving scholars are:

  • Erikton Goodloe is an agricultural business management major at the University of Arkansas at Pine Bluff. He’ll be a first-generation college graduate and looks forward to using his degree to launch a successful career helping farmers.
  • Paris Williams is an agricultural business major at Prairie View A&M University. Agriculture has been a lifelong interest for Paris, and she hopes to pursue a career in horticulture and agriculture research as well as start a small community farm.
  • Aja’Naeia Workman is a biology major at Alabama A&M University. She has plans to become a physician’s assistant to help others live healthier lives and make wiser health decisions.

All five of the 1890 Scholarship recipients are featured in the latest edition of Crop Insurance TODAY.

Risk Management Discussion Shines Spotlight on Crop Insurance

“I can honestly say I would not be sitting here if it was not for crop insurance,” wheat grower Nicole Berg recently told an audience in Washington, DC.

Last year, Berg turned to crop insurance when she was only able to harvest a third of her farm due to drought and arid conditions. Crop insurance provided a vital safety net.

Preserving and strengthening that safety net for all farm producers was a key topic at the annual Ag & Food Policy Summit, hosted by Agri-Pulse. Berg, who is President of the National Association of Wheat Growers, spoke on a panel that focused on managing risks and crop losses on the farm.

“All farmers want to do is stay in business another year,” she said.

The Ag & Food Policy Summit brought together policymakers, farm leaders, and commodity experts for policy discussions that will help shape the 2023 Farm Bill. Crop insurance is expected to remain farmers’ number one risk management tool.

“Our farmers say: crop insurance is a cornerstone of the Farm Bill. Don’t mess with it, just make it better,” said Zippy Duvall, president of the American Farm Bureau Federation.

Duvall noted that the Farm Bill should reflect the importance of farmers to our national security. That means protecting the farmers who maintain our abundant food supply. Unlike ad hoc disaster programs, which can sometimes take years to deliver assistance, arriving too late to save the family farm after disaster, crop insurance can provide timely assistance to farmers who face unforeseen challenges.

The strengths of crop insurance have made it the ideal risk management tool, said Tom Zacharias, President of National Crop Insurance Services.

  • Its public-private partnership increases efficiency and strengthens program integrity;
  • Its adaptability allows crop insurance to adjust for future risks;
  • Risks and costs are shared between taxpayers, insurers and the government, and;
  • Farmers receive help in just days or weeks, allowing them to count on the predictability of crop insurance to deliver assistance when they need it most.

America’s farmers overwhelmingly trust crop insurance to help them manage their risks. Today, crop insurance provides protection for more than 130 different commodities and covers farmers in all 50 states. Last year, crop insurance insured a record 462 million acres, providing $137 billion dollars in protection. That’s more than 90 percent of major crop insurable farmland in America.

Still, crop insurers and the U.S. Department of Agriculture’s (USDA) Risk Management Agency are continually working together to improve crop insurance to better protect farmers. In the next Farm Bill, that will mean giving USDA the tools it needs to expand affordable coverage for specialty crop producers.

“Roughly $90 billion a year in specialty crops are planted in the United States, and about $19-20 billion of those specialty crops are covered by crop insurance. The delta is not small, but it has been closing, and that’s a positive,” said Kam Quarles, CEO of the National Potato Council and a member of the Specialty Crop Farm Bill Alliance.

Quarles noted that there are more than 300 specialty crops, and each is grown differently, requiring USDA to analyze a significant amount of data. “It has an impact on how those products are priced, how they’re constructed. That’s an ongoing discussion as we look at this Farm Bill: how do we sit down with USDA and the industry, develop better data to make more affordable, useful products,” Quarles said.

As Congress considers next year’s Farm Bill, leaders encouraged farmers to speak out about how crop insurance gives farmers the certainty they need to keep farming.

President’s Budget Recognizes Crop Insurance is Key to Farm Safety Net

The President this week released his proposed Fiscal Year (FY) 2023 budget that fully funds the federal crop insurance program in recognition of the indispensable role that crop insurance plays in the farm safety net.

The release of the FY 2023 Budget follows a letter sent to OMB and the Secretary of Agriculture by 55 farming, banking, and conservation organizations asking that the administration protect crop insurance from harmful budget cuts.

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:

“America’s farmers and ranchers feed our nation, grow the fibers that clothe us, and provide an important economic driver for our rural communities. Over the past several years, crop insurance has helped farmers navigate the challenges posed by weather disasters, supply chain disruptions, and uncertain markets. The Administration has recognized the importance of crop insurance as a critical risk management tool by fully funding crop insurance in its FY 2023 budget.

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

  • By delivering aid quickly and efficiently, crop insurance continues to earn the trust of America’s farmers, protecting more than 90 percent of America’s planted crop land acres.
  • Farmers invest in their own protection. Last year, farmers spent $5 billion to purchase crop insurance and then shouldered a significant portion of losses through deductibles.
  • Crop insurance complements farmers’ efforts to invest in conservation and climate-smart farming practices.
  • 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.

“We appreciate this Administration for fully funding crop insurance in its proposed budget. We urge Congress to follow suit by protecting and strengthening crop insurance.”

Thank You, Farmers and Ranchers!

There is no greeting card or time-honored holiday tradition for National Agriculture Day, but it’s arguably one of the most important days of the year.

That’s because it’s a day to celebrate America’s farmers and ranchers and recognize their incredible contributions. After all, without farmers, we wouldn’t have food on our tables, clothes in our closets, or biofuels available at the pump.

There are approximately two million farms in America. That’s less than one percent of our nation working sunup to sundown (and sometimes all night long) to provide nearly 330 million Americans with an abundant and affordable supply of food, fiber and fuel.

While fewer and fewer people have a close connection to agriculture, our nation’s rich farming traditions live on in our farm families. In fact, about 98 percent of farms are family farms, according to the U.S. Department of Agriculture’s annual America’s Diverse Family Farms report. These family farms are responsible for 87 percent of farm production.

At National Crop Insurance Services (NCIS), we have spoken to family farmers across the country about the importance of protecting our farmers and ranchers. Farmers like Erica Wuthrich in Iowa. Erica grew up farming and is hoping to continue this legacy for generations to come.

“The majority of the families around here are farmers,” Erica told NCIS. “If we didn’t have the farming operations around here, it wouldn’t be good – it would be awful.”

As young farmers, Erica and her husband, Brent, rely on the stability provided by crop insurance to keep their farm growing, through good seasons – and bad. They’re not alone. Crop insurance is trusted by farmers to protect 460 million acres of farmland and more than $137 billion in food, fiber, and fuel.

So, as we share our gratitude for our farmers, it is equally important that we give them the tools that they need to succeed by maintaining a reliable farm safety net and a strong crop insurance program.

Happy National Agriculture Day!

What Farmers Are Telling Congress About Crop Insurance

Yesterday, the House Agriculture Committee invited various commodity groups to testify before the committee on Title I programs in the Farm Bill. This hearing kicked off the committee’s examination of the Farm Bill programs that help provide stability to America’s farmers, ranchers, and rural communities as they do the hard work of feeding, fueling, and clothing our nation.

While crop insurance was not the focus of this hearing, it was no surprise that the importance of the crop insurance program was reiterated time and time again. That’s because crop insurance is the cornerstone of the farm safety net and trusted by farmers to protect more than 90 percent of insurable farmland in America.

Commodity leaders from across the country, representing tens of thousands of farmers growing a diverse range of crops, praised the crop insurance program, speaking at times about their personal farming experience. In their own words, here’s what they had to say about crop insurance:

“ASA must share for the record the high importance of crop insurance to soybean farmers. Soybean farmers consistently communicate that this is the most effective component of the farm safety net when viewed more broadly… Crop insurance must remain affordable for producers.” – Brad Doyle, American Soybean Association

“Last year, I didn’t harvest a third of my farm. And so, I had to utilize the safety net of crop insurance, and it was there, and I’d have to say, it’s kept the family farm in business.” – Nicole Berg, National Association of Wheat Growers

“We know that agricultural markets are cyclical, and an effective safety net is imperative for the inevitable times of low prices. The combination of commodity program options and crop insurance gives farmers as well as their lenders the confidence entering planting season knowing that downside risk is mitigated in periods of steep price decline or a significant loss of production.” – Jaclyn Ford, National Cotton Council

“Crop insurance is #1. It is our #1 best risk-management tool, and we need to continue with that. It is a vital piece.” – Chris Edgington, National Corn Growers Association

“As we are seeing continuous erratic weather patterns – longer and more extreme droughts in some regions and more frequent flooding in other areas – the farm safety net and robust crop insurance program that helps farmers adequately mitigate risk and volatility becomes vital to the sustainability and continuation of family farms.” – Verity Ulibarri, National Sorghum Producers

“I hope that the stability and certainty of the farm safety net that the Title I and crop insurance programs represent will remain the top priority and driving force in the timely reauthorization of a bipartisan Farm Bill in 2023. Farmers, as well as consumers that rely on the food we produce, are facing a lot of challenges and uncertainty. Additional instability and uncertainty in the fam safety net and our food production system is the last thing we need.” –  Clark Coleman, National Sunflower Association, National Barley Growers Association, U.S. Canola Association, and the USA Dry Pea and Lentil Council

The message to Congress was loud and clear: to best serve America’s farmer and ranchers, crop insurance must be protected and strengthened in the next Farm Bill.

For America’s Farmers, Crop Insurance is First Line of Defense Against Climate Change

As farmers face increasing challenges due to climate change, the safety net provided by crop insurance is their first line of defense. This was one of the messages delivered last week at a panel discussion on mitigating the risks of climate change during the U.S. Department of Agriculture’s (USDA) 2022 Agricultural Outlook Forum.

National Crop Insurance Services President Tom Zacharias was among the stakeholders who spoke on the need to provide predictable risk management tools to America’s farmers.

“Their success depends on a healthy environment. One weather disaster can drive a family farm out of business,” Zacharias explained.

America’s farmers overwhelmingly turn to crop insurance to manage their risks. In 2021, crop insurance insured more than 460 million acres, providing $137 billion dollars in protection. Farmers invested more than $5 billion of their own money to protect the crops that supply Americans with food and fiber.

“As rural America confronts climate change, it is critical that crop insurance remain just as dynamic as the farmers it protects. To accomplish this, crop insurance needs to be widely available, affordable, financially viable, and adaptable,” Zacharias said.

Crop insurance not only works to protect farmers when disaster strikes, but it also complements efforts to incentivize the voluntary adoption of climate-smart farming practices.  Congress, USDA’s Risk Management Agency (RMA), and crop insurers have worked together to improve the voluntary adoption of farming practices that increase resiliency, improve conservation, and support a healthy environment.

David Zanoni, Senior Underwriter at RMA, discussed several of the improvements RMA has already made to accommodate new farming practices, including the requirement that farmers adhere to approved conservation plans to protect highly erodible land and wetlands as well as the use of Good Farming Practices, such as cover crops.

Zanoni noted that as agriculture continues to innovate, crop insurance will, too. “It will be a constant evolution of the product line to deal with the challenges of the day,” he said.

Lance Griff, a third-generation farmer from Twin Falls, Idaho, provided a grower perspective, sharing with the audience how he transitioned to utilizing no-till and cover crops in 2013.

“I wanted to leave healthier soil for my kids if they want to farm,” Griff said. “I also wanted our soil to have more resiliency, to endure weather challenges.”

Crop insurance has earned the trust of farmers like Griff, and it is an important part of their risk management plans.

“Crop insurance is a vital tool we employ to help us plan for the upcoming year and mitigate crop production risks that are inherent to farming. These tools help us to be optimistic and resilient in confronting the challenges that face farmers in the 21st century,” Griff said.

Dr. Julia Borman from Verisk Extreme Event Solutions spoke to the highly unpredictable nature of extreme weather and how probabilistic models can help insurers address the challenge of insufficient historical events. “Unlike events such as fire or theft, which are not highly correlated, weather events such as hurricanes are a low frequency and usually high-cost event, there is a strong correlation, and it’s hard to predict the frequency of claims that are going to happen.”

Weather as a driver of crop failure, as well as long-term climate trends, will continue to be a concern for farmers, insurers, and policymakers, Borman said. “One of the major concerns for the insurance industry is balancing that short-term versus long-term perspective,” she said.

Zacharias concluded his remarks by noting that crop insurance must remain affordable, effective, viable, and adaptable to help America’s farmers secure a more sustainable future.

“Looking forward, we know agriculture has an important role to play in the mission to protect our environment and advance climate-smart policies. And we know that a strong and resilient supply of food and fiber is critical for our economy and for our citizens,” he said.

Vilsack: USDA ‘Laser Focused’ on Crop Insurance Access

The U.S. Department of Agriculture (USDA) is committed to affordable and flexible crop insurance for the nation’s farmers, ranchers, and producers, according to Secretary Tom Vilsack.

He made his pre-recorded remarks on the second day of the crop insurance industry’s annual convention in California.

“Your work is critical to helping America’s farmers, ranchers, and producers manage the risky, but necessary, business of producing our food, fuel, and fiber that so many take for granted,” he said.

Vilsack said he’s seen historic droughts, hurricanes, floods, wildfires, and many other disasters in his time as USDA secretary. He said the farmers, ranchers, and producers who had crop insurance told him it gave them the confidence to rebuild and make it to the next growing season.

“They knew that one bad year, one lost crop, wouldn’t mean losing the family farm or ranch that had been in the family for generations because they had that insurance product, that didn’t necessarily make them whole, but did keep them in the game,” he said.

Before, during, and after disasters, agents, and adjusters help deliver for agriculture. America’s farm policy is the envy of the world, he said.

“And the public-private partnership of Federal crop insurance is one of its key components,” he said.

More and more farmers are choosing to invest in crop insurance, in part, because payments are fast but also because the program continues to innovate. He noted the growth in coverage options for different crops and production systems.

He said USDA is working to help producers effectively manage risk through crop insurance with programs including row crop, whole farm revenue protection, rainfall index programs for forage and dairy safety net services to protect against market fluctuations.

USDA is innovating with new insurance options for small producers who sell locally through the micro farm policy that simplifies record keeping and covers post-production costs. It is also working to make cover crops more affordable.

Data from crop insurance is helping to streamline the process and reduce the burden on producers.

“You all have basically helped provide opportunities and hope to our farm families,” he said.

The agency sees its partnership with crop insurance as the path forward to securing the nation’s food supply.

“At USDA, we are laser focused on making sure that every farmer, rancher, and producer of food, fuel and fiber can access the needed crop insurance tools to manage their operating risk,” he said.

Growers, Lenders, Conservationists Call on Congress to Back Crop Insurance in Farm Bill

Crop insurance is a vital risk management tool that should be maintained and strengthened in the next Farm Bill, according to a panel of commodity growers, lenders, and conservationists.

The panel was part of the Monday presentations at the crop insurance industry’s annual conference in California.

“Crop insurance is one of our most important tools for our growers in terms of protecting their yields as well as their revenue,” said Jake Westlin of the National Association of Wheat Growers.

Wayne Stoskopf, of National Corn Growers Association, said crop insurance has been the cornerstone of the farm safety net for the majority of corn growers.

“It works really well,” he said. “I don’t expect that to change at all. They are continuing to innovate and look at things like the post application coverage endorsement (PACE) as something that our growers identified as a need for split nitrogen practices and wanted to continue to see advancements and innovations there.”

Robbie Minnich, of National Cotton Council, said crop insurance is very important to cotton growers.

“As you all well know almost every acre of cotton gets some level of crop insurance,” he said. “So, we want to make sure crop insurance is there, it’s available, it’s affordable and we can do whatever we can do to support the industry.”

Ben Mosely, of USA Rice Federation, said innovations in crop insurance are making it more attractive to rice growers.

“Obviously there’s a lot of new crop insurance policies and endorsements that have come on in the last 10 plus years that are very attractive to us,” he said. “We are taking on more crop insurance acreage every year. It’s been a great program.”

Skylar Sowder, of Farm Credit Council, said crop insurance is hugely important to lenders.

“It is a vital risk management tool,” she said. “Additionally, a lot of our farm credit associations also provide crop insurance as a service to their customers.”

Kellis Moss, of Ducks Unlimited, said his group is a proud to partner with the crop insurance industry.

“We’d like to see as many acres in production have crop insurance on their farms as possible,” he said. “And we couldn’t be prouder of our partnership, or relationship. We think it’s great. It’s continuing in a good direction.”

Lawmakers Pledge to Maintain, Expand Crop Insurance in Next Farm Bill

The public-private partnership of crop insurance should be maintained and expanded in the 2023 Farm Bill, according to members of Congress who spoke at the industry’s annual conference in California on Monday.

“The crop insurance industry plays an essential role in supporting agriculture in my home state and throughout farm country,” said Senator Tina Smith (D-Minn.)

Smith joined Senator Jerry Moran (R-Kan.), Representative Salud Carbajal (D-Calif.) and Representative Adrian Smith of (R-Neb.) in discussing the critical role crop insurance plays in rural communities.

Moran said he decided to run for Congress, in part, to make sure rural communities like his home of Plainville, Kansas, have a bright future.

“It is important to recognize the success of rural communities is directly tied to agriculture and the ability for farmers to stay in business is dependent on a strong Federal crop insurance program,” he said.

Carbajal said farmers in his district often tell him they rely on crop insurance.

“I can’t tell you how often I hear from the growers in my district how important crop insurance can be to them,” he said. “And we can continue to work to improve and expand the program.”

Representative Smith said crop insurance alleviated the blizzard and flooding devastation that took place in Nebraska in 2019.

“What you guys work on is so incredibly important not just in my district but across the country,” he said.

The members of Congress pledged to maintain and expand crop insurance in the 2023 Farm Bill. The debate over the key legislation will start soon.

“I’ll be looking to you for all your advice and input,” said Senator Smith. “As crop insurance agents, you talk with farmers every day and you know better than most what is happening in rural communities across the country.”

Moran said critics of crop insurance see it as a program that can be cut to increase spending elsewhere or as a vehicle for unrelated agendas such as environmental regulations.

“Instead, the American public should see, like I do, the farm families who are able to withstand a weather disaster and a failed crop and ultimately are able to pass farms and ranches from one generation to the next,” he said. “It is because crop insurance kept them in business.”

Carbajal thanked the crop insurance industry for the crucial role it plays in agriculture.

As the 2023 Farm Bill debate heats up, he said he wants to hear from the crop insurance industry and the farmers it serves.

“Please know that I am committed to ensuring crop insurance programs are maintained and even enhanced in the next Farm Bill,” he said. “I want to hear from you about what is important.”

Representative Smith said the public-private partnership of crop insurance removes a lot of the politics from disaster relief. He said the formula-based approach of crop insurance saves taxpayer dollars.

“As we do now shift gears to 2023 Farm Bill, as Salud pointed out, these are issues we all want to hear from you on,” he said. “The fact is you have the insight and expertise. I’m anxious to hear from you to see how we might take, I think, a solid program and make it better knowing that ultimately we can save taxpayer dollars because we can remove the politics of disasters that are bound to happen if all we have are ad-hoc disaster payments that are resulting from a vote in Congress.”

Crop Insurance Continues to Earn the Trust of America’s Farmers and Ranchers

As agriculture faces new challenges and a changing climate, crop insurance remains the number one risk management tool for America’s farmers and ranchers, according to the chair of National Crop Insurance Services (NCIS). Last year, crop insurance protected a record 460 million acres of farmland and more than $137 billion in food, fiber, and fuel.

Kendall Jones, chair of NCIS and president and CEO of ProAg, made her remarks at the start of the industry’s annual meeting in California.

“The scale and size of crop insurance further demonstrate that farmers have come to rely upon our industry when the going gets tough,” she said. “We need to build on that credibility as the environment farmers operate in continues to evolve. We are in position to continue to modernize and improve – adapting risk management tools to the risk.”

Farmers invested $5 billion dollars of their own money through premiums in 2021 to protect their crops. Jones said the increasing popularity of crop insurance should come as no surprise.

“The crop insurance industry has established credibility with farmers and policymakers. It all starts with trust,” she said. “The American farmers and ranchers rely on the crop insurance industry to be there when they need us as they set up their operating loans, in times of natural weather disasters or during financial distress from market pressure.”

Among the most highly discussed topics of the conference was how the industry is improving to meet the changing needs of agriculture. Jones praised the data-driven nature of crop insurance, explaining that it has made crop insurance uniquely adept at helping America’s farmers respond to climate change.

“As farmers deal with new challenges, it is important to maintain the integrity and credibility of the Federal crop insurance program, but we need to acknowledge it will not stay the same,” she said.

Jones pointed to the work that the crop insurance industry has done alongside the U.S. Department of Agriculture to facilitate the voluntary adoption of climate-smart agriculture and champion more diversity and equity within agriculture.

She set the stage for the upcoming Farm Bill debate by noting the large percentages of new members in both the Senate and House agriculture committees along with changes in leadership in both committees.

Recently, a diverse coalition representing 55 farming, banking, and conservation organizations called on government officials to oppose cuts to crop insurance in the Farm Bill. The coalition delivered letters to the House and Senate budget and appropriations committees, as well as to the Secretary of Agriculture and Acting Director of the Office of Management and Budget, emphasizing the importance of crop insurance as a risk management tool.

“There are always new ideas from new voices to be heard in the Farm Bill discussion,” she said. “How we share our collective story and listen to their perspectives will help influence the process.”

Crop Insurance Earns Bipartisan Praise at Congressional Hearing

Crop insurance is the cornerstone of the farm safety net and an invaluable risk management tool for America’s farmers. This message was underscored during a recent House Agriculture Subcommittee hearing called by Subcommittee Chairwoman Cheri Bustos (D-Ill.)

“I hear through pretty much every ag meeting I have how important the Federal crop insurance program is to help farmers manage their risk,” Bustos said in her opening remarks.

Robert Bonnie, Under Secretary for Farm Production and Conservation, testified before the subcommittee about the steps that the U.S. Department of Agriculture is taking to help America’s farmers and ranchers deal with the increasing risks of farming. Bonnie began his testimony by emphasizing the role that crop insurance plays in helping agriculture defend against climate change.

“With increasing extreme weather, crop insurance remains a vital tool for agriculture,” Bonnie said. “Crop insurance is absolutely critical,” he added later during questioning from members of Congress.

The public-private crop insurance program is an important component of the farm safety net. This is especially true as farmers experience more crop losses due to adverse weather events driven by a changing climate. When disaster strikes, crop insurance gives farmers the stability they need to plant again.

The success of crop insurance earned praise from lawmakers on both sides of the aisle throughout the hearing.

“I consistently hear from producers that Federal crop insurance works, it works well for them, and that the program does not need major changes,” said Rep. Angie Craig (D-Minn.).

More than 50 farming, banking, and conservation organizations representing groups from across rural America recently echoed this call to protect crop insurance when they sent letters to policymakers asking them to oppose any budget cuts to the program.

Farmers want to ensure that crop insurance remains strong, because they trust in the program to provide a safety net when disaster strikes. In fact, farmers rely on crop insurance to protect more than 90 percent of insurable farmland in the United States. This trust is built on crop insurance’s long record of delivering aid to farmers quickly and efficiently.

Rep. Dusty Johnson (R-S.D.) also pointed to the speed of crop insurance during the hearing.

“I think that the crop insurance system we’ve got has done a really good job from a customer service perspective as well as making sure those indemnities get out in the field as quickly as possible,” Johnson said. “The public-private partnership has delivered a tremendous amount of value.”

It’s no wonder that more and more farmers are protecting their livelihood with crop insurance.

The Three “C’s”: Crop Insurance, Climate, and Conservation

Over the past several years, farmers have dealt with immense climate and weather-related challenges. America’s farmers have survived droughts, hurricanes, derechos, floods, fires and a global pandemic. Through it all, farmers have kept farming. One constant throughout these past several years has been the availability of Federal crop insurance.

Recently, the Crop Insurance Coalition, a group representing farmers, lenders, agricultural input providers and conservation groups, sent letters to the Biden Administration and other congressional leaders asking them not to propose cuts to crop insurance in the upcoming FY2023 budget.

“Crop insurance [is] a farmer’s first line of defense against climate change and other disasters. As the challenges for America’s farmers and ranchers continue to grow, we believe crop insurance as a safety net is only becoming more important to stability in rural America…It is no accident that the most recent farm bills emphasized risk management, and in doing so, protected the interests of American taxpayers.”

Those familiar with the development of Federal crop insurance will recall that 1995 was the first year of implementation of the Crop Insurance Reform Act of 1994. The 1994 Act was in response to the extreme flooding and excessive moisture conditions occurring in the Midwest. Since the inception of the Act, acres insured have essentially doubled while coverage has increased more than five times.

Crop insurance is available nation-wide, and protection is provided for all eligible farmers. Accordingly, crop insurance has provided support to farmers that experienced losses due to a variety of adverse events across the country. Prominent examples since the 1993 flooding include:

  1. 2011 extreme drought in the Southern Plains coupled with flooding along the Missouri River
  2. 2012 drought
  3. 2019 excessive moisture conditions resulting in farmer prevented planting losses
  4. 2020 Midwest derecho
  5. Hurricane losses in the Southeast in 2020
  6. Drought in the Northern Plains in 2021

It is important to point out that as farmers with crop insurance have been financially protected from these weather events, the crop insurance program has operated well within its statutorily required actuarial soundness mandate. Since 1995, crop insurance premiums have exceeded indemnities.

Crop insurance’s mission is about more than the number of catastrophic weather events and dollars going out the door. It’s personal. Family farmers depend on crop insurance to maintain their way of life and support the local agricultural economy. For many rural towns, a healthy and resilient agricultural economy is also vital to their economic success.

Critics of the Federal crop insurance program have stated that the program does not encourage or require farmers to adapt to climate change. Such criticism ignores the evolution of the program to accommodate the integration of conservation programs and farmer initiatives to incorporate climate smart farming practices.

The guidelines for program participation, based on good farming practices, have evolved over time. Since 2014, farmers have been required to report their conservation plans in order to be eligible for crop insurance. In the 2018 Farm Bill, the use of cover crops was incorporated into the portfolio of good farming practices.

In a study published in 2020 in the Journal of Environmental Management, the authors report that crop insurance and conservation practices serve unique roles and are used simultaneously. Further, they report that the crop insurance program is not a barrier to the adoption of conservation practices such as cover crops and conservation tillage among Midwest farmers.

According to the study, “…results suggest that resiliency for Midwest operations includes both crop insurance and conservation practices. Neither behavior was found to inhibit the other. On the contrary, corn producers experienced complimentary outcomes from a combined approach that was greater than participation in either behavior by itself.

To state that the modern-day crop insurance program does not support farmers’ efforts to adapt to climate change or reduce greenhouse gas emissions is simply not true.

The Federal crop insurance program has demonstrated the flexibility to accommodate change. These changes have been, and will continue to be, science based, data driven, and provide incentives for voluntary participation by farmers.

Rural America to Congress: Protect Crop Insurance

As policymakers consider budget decisions for Fiscal Year 2023, rural America is once again asking that they “do no harm” to crop insurance.

Last week, a diverse coalition representing 55 farming, banking, and conservation organizations called on government officials to oppose cuts to crop insurance. The coalition delivered letters to the House and Senate budget and appropriations committees, as well as to the Secretary of Agriculture and Acting Director of the Office of Management and Budget, emphasizing the importance of crop insurance as a risk management tool.

America’s farmers and ranchers have been dealt a series of tough years, marked by extreme weather events. Despite the increasingly uncertain nature of farming, the certainty of crop insurance has provided an invaluable safety net for our farm producers, our food supply, and our rural communities.

“As the challenges for America’s farmers and ranchers continue to grow, we believe crop insurance as a safety net is only becoming more important to stability in rural America. During this tumultuous time, one of the few certainties that farmers could rely on was the protection provided by their Federal crop insurance policy,” the letters state.

Throughout each disaster, the crop insurance program has worked exactly as Congress intended, delivering aid in a timely manner to keep America growing. As the letters point out, the success of the crop insurance program is no accident.

Crop insurance is designed to provide individualized risk management to America’s farmers, no matter what they grow or where they grow it. Furthermore, its unique public-private partnership requires farmers and ranchers to share in the risk. Farmers and ranchers spent approximately $5 billion in 2021 to purchase crop insurance and then were required to shoulder deductibles before aid arrived.

Importantly, the letter highlighted the role crop insurance plays in helping farmers respond to climate change, increase resiliency, and invest in conservation efforts. This is strengthened by its nature of being a data-driven program.

“Crop insurance allows producers to customize their policies to their individual farm and financial needs and policies are based on fundamental market principles, which means higher risk areas and higher value crops pay higher premiums for insurance,” the letters state. “Crop insurance and its links to conservation further ensure that the program is a good investment for taxpayers.”

The letters close with a call to oppose any budget cuts to crop insurance.

Soybean Leadership Gives Crop Insurance High Marks

Farmers are counting on Congress to maintain risk management as a top priority in the new Farm Bill, the American Soybean Association’s president, Brad Doyle, said recently on Agri-Pulse’s Open Mic.

Congress could begin debate on the 2023 Farm Bill as early as this month. Doyle’s association represents 500,000 U.S. soy farmers on domestic and international policy issues and is surveying members this winter on farm bill topics. It plans to share with Congress a list of priorities.

“Risk management, I believe, if you look at crop insurance, is used on about 90 percent of the soybean acres in the United States. That would be devastating to take that tool away. It is a great program. It gives us financial security when disaster happens, such as a tornado or a large weather event or flooding even. So, we are going to stand by the risk management tools that we have, such as crop insurance.”

In addition to his remarks on risk management and crop insurance, Doyle spoke about the inability to find adequate inputs such as fertilizers and herbicides and how that could impact growers in 2022. He also mentioned that trade, rising inflation and labor shortages continue to be concerns for farmers across the country. You can listen to Doyle’s interview on Agri-Pulse’s Open Mic here.

Crop insurance stands ready to help farmers and ranchers during these challenging times. We thank the American Soybean Association for its support of proven risk management tools like crop insurance.

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.