Attacks on Revenue Insurance Harm America’s Farmers

Farm families across America are struggling.  Crop prices are down.  Farm incomes have fallen drastically in the past several years and weather disasters have hit farms in most parts of the country.  And the pain is trickling down to small businesses and communities throughout rural America.  Yet, some lawmakers are pushing proposals that will make

Misleading Crop Insurance Attacks Hurt America’s Farmers

Agriculture’s opponents use terms like “guaranteed profits” to disparage the crop insurers that protect America’s food and fiber supply, help farmers pick up the pieces after disasters, and shield taxpayers from footing the whole bill through unbudgeted ad hoc disaster packages. These criticisms unfairly confuse basic business concepts like gross returns and net income. The

ICYMI: Insurance Vital for Farmers

By: Luke Sandrock Published in the Herald & Review August 25, 2017 Even the best-laid plans sometimes go wrong. No one knows this more than a farmer. They can plan out the entire year for how they will harvest a crop, but a single storm or a drop in the market can change everything. It

An Introduction to Crop Insurance

Welcome to “What’s Cropping Up.” If you’re reading us for the first time, chances are good that you’re either a new Congressional staffer or a reporter that’s joining the ag policy beat. As such, we wanted to start with some of the basics. Of course, if you’re chomping at the bit to graduate from Crop

Insurance Basics: Skin in the Game

Crop insurance is arguably the first farm policy in history that is largely financed by the farmers who benefit from it. Unlike policies of the past, which were 100 percent backed by taxpayers, modern-day farm policy requires growers to take an active role in its funding – a concept sometimes called “skin in the game.”

Insurance Basics: Delivery Costs

Whenever a customer writes a premium check for an auto or home insurance product, part of that payment is allocated to servicing the policy. That is, insurance companies include an expense load in the premium for each policy beyond anticipated losses to offset overhead costs, such as staff salaries, agent commissions, adjusting losses, employee training,

Insurance Basics: Delivery Costs

Whenever a customer writes a premium check for an auto or home insurance product, part of that payment is allocated to servicing the policy. That is, insurance companies include an expense load in the premium for each policy beyond anticipated losses to offset overhead costs, such as staff salaries, agent commissions, adjusting losses, employee training,

ICYMI: Crop Insurance: What a difference four decades make

Agri-Pulse November 4, 2016 For nearly four decades I have worked with Connecticut River Valley farmers to help protect their livelihoods. Over that time, I’ve seen many changes, both in the make-up of farms and the tools farm families have to manage uncontrollable risk. As our population has grown, the amount of available farmland has

Insurance Basics: Coverage Availability

Suppose that you have a fire in your home, or you total your car and have to file a major claim with your insurance provider. On one hand, you’re thrilled that an indemnity is on its way to help pick up the pieces.  On the other, you’re dreading future increases in premiums and the likelihood

Insurance Basics: The Risk Pool

All insurance, from auto to life, health, and crop insurance, works best when it expands the number of people it covers. That’s because the broader the participation, the more widely risk can be spread. And by spreading the chance of loss among a diverse group of insureds, premiums become more affordable for everyone involved. This

Insurance Basics: The Risk Pool

All insurance, from auto to life, health, and crop insurance, works best when it expands the number of people it covers. That’s because the broader the participation, the more widely risk can be spread. And by spreading the chance of loss among a diverse group of insureds, premiums become more affordable for everyone involved. This

Crop Insurers Celebrate Past Success, Set Sights on Future

Crop insurers and farmers have shouldered their share of challenges in recent years, ranging from an historic drought to lower-than-expected financial returns, legislative debates, and implementing a new Farm Bill. But Tim Weber, chairman of the American Association of Crop Insurers and National Crop Insurance Services, said today that those challenges have only strengthened crop

Crop Insurers Celebrate Past Success, Set Sights on Future

Crop insurers and farmers have shouldered their share of challenges in recent years, ranging from an historic drought to lower-than-expected financial returns, legislative debates, and implementing a new Farm Bill. But Tim Weber, chairman of the American Association of Crop Insurers and National Crop Insurance Services, said today that those challenges have only strengthened crop

WSJ Spotlights Crop Insurance Business

Farm policy opponents love to tell tall tales of crop insurance providers banking huge returns. In a quest to eliminate farmers’ primary risk management tool, they repeatedly attempt to mislead lawmakers into believing that crop insurance profits are guaranteed and will remain rosy for perpetuity. Luckily, America’s premier business publication isn’t buying such nonsense and

New Crop Insurance Video Tackles Common Farm Policy Misperceptions

Investments made in farm policy and crop insurance benefit Americans, according to a new video released earlier this month by National Crop Insurance Services (NCIS). The two-minute educational piece was made public as Congress worked to reverse harmful cuts to crop insurance made during last month’s Budget Agreement. If those cuts remain in place, agricultural leaders

Technology, Sustainability and Insurance Essential to Agriculture’s Future

Farmers and ranchers are tasked with producing more food and fiber than ever to meet the world’s growing appetite, and they have to do it while preserving scarce natural resources and dealing with extreme weather and volatile markets. A combination of new technology, smarter farming practices, and government policies will be required to succeed, according

Library of Congress Adds Crop Insurance Website to its Historical Collection

National Crop Insurance Services (NCIS) announced recently that its website has been selected by the United States Library of Congress (LOC) to be part of America’s historic collection of Internet materials. For nearly two decades, the LOC has catalogued digital materials spanning a variety themes, events, and issue areas with the purpose of capturing records

Farmers Help Fund $14 Billion of the Farm Safety Net in 2014

Farmers who filed crop insurance claims in 2014 collectively shouldered approximately $10 billion in deductible losses before collecting any payments, according to new data unveiled recently by the National Crop Insurance Services (NCIS). When combined with the $3.9 billion spent to buy insurance coverage in 2014, farmers absorbed at least $14 billion in out-of-pocket costs,

Crop Insurers’ Returns In Question

Financial returns for crop insurers have fallen nearly 60 percent below expectations since 2011, according to the National Crop Insurance Services (NCIS).  The Standard Reinsurance Agreement — the business contract between the federal government and private-sector insurers that went into effect in 2011 — targeted average returns on retained premium of 14.5 percent.  Returns on

New NCIS Video: Private-Sector Delivery Essential to Crop Insurance’s Future and Viability

Private companies are integral to crop insurance’s future because they shoulder risk that would otherwise be borne by taxpayers and because they maintain the system used to efficiently provide assistance to farm families following disasters.  However if the business does not remain viable, private-sector participation could wane, which would weaken America’s farm policy, according to

New NCIS Video: Private-Sector Delivery Essential to Crop Insurance’s Future and Viability

Private companies are integral to crop insurance’s future because they shoulder risk that would otherwise be borne by taxpayers and because they maintain the system used to efficiently provide assistance to farm families following disasters.  However if the business does not remain viable, private-sector participation could wane, which would weaken America’s farm policy, according to

NCIS President Tom Zacharias Talks Crop Insurance on Agri-Talk

The increasingly important role of crop insurance to farmers, ranchers and producers across the country – and its place of prominence in the 2014 Farm Bill – were among the many topics of conversation during Mike Adams’ recent interview with NCIS President Tom Zacharias on Agri-Talk. “We think this is a very positive Farm Bill

Affordability of Crop insurance Policies Focus of New Video

Crop insurance policies must remain affordable for farmers and ranchers or the entire farm safety net will fail, crop insurance providers said today in a new educational video. Farmers help fund current farm policy by spending approximately $4 billion a year out of their own pockets on crop insurance policies and by shouldering a portion

Crop Insurance Adjuster Schools Off to a Great Start!

Crop insurance loss supervisors and loss adjusters attended classes that provided them with updated field instruction, basic procedures, recent loss adjustment policy changes and hands-on training for dealing with crops damaged by hail.  The classes, part an ongoing adjuster educational series sponsored by National Crop Insurance Services (NCIS), were held in Columbia, Missouri in early

2013 Year in Review: New Policy and Coverage

Crop insurance reached significant and historic milestones in 2013 — both in its formal recognition by Congress as the primary risk management tool for farmers and the volume of protection it offered — according to an article released in the May 2014 edition of Crop Insurance TODAY. “Again in 2013, crop insurance helped farmers deal

CROP INSURANCE IN ACTION: Tim Totheroh, Wellington, Illinois

Although Tim Totheroh says that his last name is “Pennsylvania Dutch,” he’s 100 percent Illinois farm boy, having spent his entire life on a farm near Wellington, Illinois. Totheroh, who farms 850 acres of corn and soybeans, is also a crop insurance adjuster, which gave him unique insight into the historic drought of 2012. Totheroh

2013 A Landmark Year for Farmers, Crop Insurance Industry

On the heels of the 2012 drought, farmers turned to crop insurance in record numbers to protect their crops in 2013, according to data released recently at the convention hosted by the National Crop Insurance Services (NCIS) and American Association of Crop Insurers The industry noted that 2013 had been a landmark year for both

Ten Considerations: The Role of Crop Insurance in the Farm Safety Net

More than a half-century ago, acclaimed historian Murray Benedict noted, “There are indications … that crop insurance is gradually emerging as one of the more settled features of American farm policy.” That prediction, perhaps a bit premature at the time, has certainly been borne out, as over the last decade crop insurance has grown from

Ten Considerations: The Role of Crop Insurance in the Farm Safety Net

More than a half-century ago, acclaimed historian Murray Benedict noted, “There are indications … that crop insurance is gradually emerging as one of the more settled features of American farm policy.” That prediction, perhaps a bit premature at the time, has certainly been borne out, as over the last decade crop insurance has grown from

CROP INSURANCE IN ACTION: Bing Von Bergen, Moccasin, Montana

Bing Von Bergen is not only the president of the National Association of Wheat Growers, he’s a third-generation Montana wheat farmer who has seen all kinds of weather over the years. “Last year, parts of the nation had the worst drought since the ‘Dirty 30s,” he said, recalling the name given the Dust Bowl years.

CROP INSURANCE IN ACTION: Bing Von Bergen, Moccasin, Montana

Bing Von Bergen is not only the president of the National Association of Wheat Growers, he’s a third-generation Montana wheat farmer who has seen all kinds of weather over the years. “Last year, parts of the nation had the worst drought since the ‘Dirty 30s,” he said, recalling the name given the Dust Bowl years.

New NCIS Video: Crop Insurance By The Numbers

As we continue pressing forward in the 2013 Farm Bill debate, the success of the crop insurance program and the benefit that it has had to the American taxpayer is the subject of a recently released NCIS video. “Over the last decade, overall taxpayer spending on farm policy as a whole has steadily declined,” notes

New NCIS Video: Crop Insurance By The Numbers

As we continue pressing forward in the 2013 Farm Bill debate, the success of the crop insurance program and the benefit that it has had to the American taxpayer is the subject of a recently released NCIS video. “Over the last decade, overall taxpayer spending on farm policy as a whole has steadily declined,” notes

New Video Highlights Success of Crop Insurance in Managing Disaster

America’s Farmers Bounce Back from Record Drought of 2012 On the heels of the worst drought in decades, Americas farmers — and the rural economies they support — bounced back and are expecting a record corn crop this year, due in part to the fact that 86 percent of planted cropland was protected by crop

New Video Highlights Success of Crop Insurance in Managing Disaster

America’s Farmers Bounce Back from Record Drought of 2012 On the heels of the worst drought in decades, Americas farmers — and the rural economies they support — bounced back and are expecting a record corn crop this year, due in part to the fact that 86 percent of planted cropland was protected by crop

NCIS Responds to Unfair Bloomberg Series on Agri-Talk

Mike Adams, radio host of Agri-Talk, recently interviewed National Crop Insurance Services President Tom Zacharias regarding a recent Bloomberg News series that contained numerous factual errors and obvious bias, claiming for instance, that the government “pays farmers to buy [crop insurance] coverage.” “Farmers are not paid to buy crop insurance,” noted Zacharias. “Farmers pay for

Farmers Shoulder Nearly $17 Billion in Losses in 2012

Before farmers received a single dime in crop insurance indemnity payments, they shouldered $12.7 billion in losses as part of their deductibles to crop insurance policies, according to a guest editorial published today by Tom Zacharias, president of National Crop Insurance Services (NCIS). “When combined with the $4.1 billion farmers paid out of their own

NCIS Releases ‘Crop Insurance: Just the Facts’

As the nation’s crop insurers prepare for the Farm Bill and funding deliberations in the future, National Crop Insurance Services (NCIS) has released a detailed question-and-answer resource laying out the facts about crop insurance and dispelling some of the most common arguments against crop insurance put forth by its critics. “Crop insurance is the single

The Truth Could Set Us Free; If They’d Print It

The ongoing discussions about resolving our national debt continues to provide plenty of fuel for those who wanted to torch a key aspect of farm policy, crop insurance. The New York Times came out swinging against crop insurance – again – with a January 15 article that led “the worst drought in 50 years could

Video Shows Adjuster Training Ensures Consistency, Accuracy and Efficiency of Procedures

Support for crop insurance is especially strong in rural America after this historic drought. A new NCIS video focuses on the overall training, continuing education and primary role adjusters play in getting crop insurance claims processed efficiently and accurately. More than 146,000 policies have been indemnified so far this year, resulting in more than $2.2

Video Shows Adjuster Training Ensures Consistency, Accuracy and Efficiency of Procedures

Support for crop insurance is especially strong in rural America after this historic drought. A new NCIS video focuses on the overall training, continuing education and primary role adjusters play in getting crop insurance claims processed efficiently and accurately. More than 146,000 policies have been indemnified so far this year, resulting in more than $2.2

Crop Insurance Adjusters Work Over-Time to Expedite Claims

Crop insurance adjusters in the Corn Belt and in other drought-stricken areas have been working long hours to ensure that farmers who have crop damage can get their claims process started. With 5,000 adjusters working in all 50 states, the industry has been forced to move adjusters from regions spared from the drought to regions

NCIS Unveils Newly Revamped, Redesigned Website

National Crop Insurance Services recently unveiled a newly redesigned and revamped website that will ensure that policy makers, members of the media and academics are able to easily find and utilize the organization’s many tools and online resources. The site prominently features key farmer, lender and insurance agent testimonials discussing the importance of crop insurance

Crop Insurance Leader Asks Congress to Do No Harm

“How crop insurance emerges from the 2012 Farm Bill process will hold major ramifications for this risk management program and for America’s farmers and ranchers who have come to rely on it,” Steve Rutledge told the Senate Committee on Agriculture, Nutrition and Forestry on March 15, 2012. Rutledge, who spoke on behalf of crop insurance

Agriculture Risk Happens, Even Where You Didn’t Expect It

As a former Chief Economist for USDA, I can attest to the fact that farming is indeed a very risky business. Recent news reports out of USDA’s Risk Management Agency underscore that point all too clearly: With some 15 percent of all crop insurance claims yet to be processed, crop insurance companies have paid out

Agriculture Risk Happens, Even Where You Didn’t Expect It

As a former Chief Economist for USDA, I can attest to the fact that farming is indeed a very risky business. Recent news reports out of USDA’s Risk Management Agency underscore that point all too clearly: With some 15 percent of all crop insurance claims yet to be processed, crop insurance companies have paid out