Crop Insurance Essential for California Farmers

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For three years, California’s farmers and ranchers faced extreme drought. Then, this winter, as crop insurance agent Dan Van Vuren tells it, “It started raining in January and it didn’t stop until March.”

It’s been a devastating year for many California growers, but crop insurance has provided a valuable safety net for our farmers, our food supply, and the farm economy.

“Crop insurance keeps farmers in business,” Dan said. “The more farmers you have in business, the more food you’re going to have on the table.”

National Crop Insurance Services (NCIS) recently traveled to California to capture the stories of private-sector crop insurance agents like Dan, and the farmers and ranchers who rely on this vital component of the farm safety net. You can watch all of their video stories here.

Farmers like sixth-generation grower Alex Wilson, who runs a vertically integrated pear and cherry operation with his family.

“I want Congress to know that there are family farms that depend on crop insurance. People like me who want to continue on a legacy.”

Check out more quotes from real farmers, ranchers, and agents by visiting our Real Stories page.

Farmers: Crop Insurance Provides Protection, Not Profit

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America’s farmers don’t profit from crop insurance. They’d rather grow and harvest a crop than file a crop insurance claim.

We recently shared an explainer demonstrating how crop insurance is an investment into the protection of family farms – not a get-rich-quick scheme. A brand-new series of interviews with farmers in the field confirms that farmers buy crop insurance with the hopes of never needing to actually use it.

“By no means are we going to get rich off of crop insurance,” fourth-generation farmer Steve Koretoff said.

Steve recalled a massive hailstorm that mowed down about 1,000 acres of cotton. “If it wasn’t for the fact that we had crop insurance, it would have been a devastating loss for our operation.”

Farmer Eric Ott knows that feeling of devastation all too well. This year, flood waters destroyed two alfalfa fields and his walnut fields. “It’s sad,” he said. “You put your heart and soul into growing these things and then it just goes like that and there’s nothing.”

Eric was grateful he had crop insurance to help offset his losses, but crop insurance did not make Eric whole, let alone allow him to recoup the potential income that he would have received from selling that alfalfa and walnut crop.

“We’re not in this to make money, to collect the insurance to make money. We just want to be able to pay the bills and sleep at night and not lose the farm.”

When almond farmer Donny Hicks had a disastrous harvest one year, he filed a crop insurance claim to cover the costs he had already invested into that year’s almond crop.

“Of course, not making any money, but covering our cost and getting through so that we could continue to farm the next year,” he said.

“The last thing I want to do is collect crop insurance,” fourth generation farmer Craig Ledbetter echoed. “But it’s also something that if disaster happens that I absolutely need…to break even and give you a fighting chance for another year.”

Misleading Claims About Crop Insurance Hurt Family Farmers

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Farmers don’t profit from crop insurance. They’d rather grow a crop than file a claim.

Crop insurance keeps America’s farmers growing after disaster. It’s the cornerstone of the farm safety net, and an integral risk management tool for family farmers.

But activist critics are not afraid to use misleading claims to dismantle the farm safety net, hurting the family farmers who depend on crop insurance. Criticisms that farmers somehow profit when they file crop insurance claims or would rather file a claim than grow a crop are not only false, but also run counter to the hardworking ethics of the American farmer.

Let’s explore how crop insurance works.

Farmers purchase crop insurance before they plant.

Farmers work with private-sector crop insurance agents to purchase a crop insurance policy before they plant a crop. The policy is personalized to the unique risks and needs of that farm.

Farmers pay to purchase crop insurance policies…

Farmers are required to invest in their own protection and share in the risk. Last year, America’s farmers collectively paid $6.8 billion to purchase crop insurance premiums. As Senator Debbie Stabenow (D-MI), Chairwoman of the Senate Agriculture Committee said, “Our farmers, they’re not asking for a handout.”

…that are made affordable through government discounts.

The Federal government provides discounts to ensure it remains affordable for farmers. Many farmers – especially young and beginning farmers – are already operating on tight profit margins. Increasing the cost of crop insurance would be devastating.

So, after a farmer purchases crop insurance, what next? They grow their crops, raise their livestock, follow Good Farming Practices, claim. It’s an investment into the protection of their family farm.

“Most every farmer truly buys [crop insurance] and hopes they never use it. We would much prefer to make a good crop and sell it at a good price… but those years come that you’re going to need it. And being able to have something to lean on, to know that you’re going to be in business next year is a big deal,” said South Carolina farmer Landrum Weathers.

But if a disaster strikes the farm, farmers need help – fast.

Famers can’t afford to wait years for Congress to approve emergency disaster aid. Farmers need aid now to settle forward marketing contracts for crops that were destroyed, purchase livestock feed after their fields were sapped by drought, or pay back the the operating loan that went towards seed, fertilizer, and other expenses for a crop that never made it to harvest.

Farmers file a claim with their crop insurance agent.

Private-sector crop insurance claims adjusters quickly and accurately assess damages and calculate losses. Delivering aid based on actual losses protects farmers and taxpayers.

Farmers quickly receive aid…

Farmers receive help in just days or weeks, making crop insurance faster than disaster aid.

…minus an average 25% deductible.

Farmers must shoulder a deductible, which is on average about 25% of the value of the loss they experienced. In that way, crop insurance is like other types of insurance. If you have a car accident, you must pay a certain amount before your insurance kicks in.

At the end of the day, crop insurance must be actuarially sound with a loss ratio performance mandate of “not greater than 1.0.” That means that over time, indemnity payments paid out to farmers should equal the total premiums invested into the system.

So, while the Federal government is an invaluable partner in ensuring that crop insurance remains affordable, farmers are still paying into the system. They’re relying on crop insurance to help them survive a disaster so they can plant again the next season, not turn a profit.

“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,” Arkansas farmer Tim Ralston told us when we visited his farm last summer.

That is why a robust crop insurance program is essential to all Americans. Crop insurance protects the farmers who grow our food and strengthens our national food security.

Private-Sector Delivery Protects Farmers

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The Federal crop insurance program is built on a unique public-private partnership. Under this successful model, farmers purchase a personalized crop insurance policy from any of the private insurance companies – known as Approved Insurance Providers, or AIPs – authorized to sell and service crop insurance by the U.S. Department of Agriculture (USDA).

But how does private-sector delivery of crop insurance protect farmers? Watch our new video– featuring real farmers, real agents, and real adjusters – to learn more.

Crop insurance companies work together with the USDA to improve the regulatory framework of crop insurance, improve program delivery, and expand participation. While the USDA sets rates and rules for the various plans of insurance that can be sold by private crop insurance agents, it is the responsibility of crop insurance companies to write policies, as well as adjust and process claims.

That means when disaster strikes, private-sector crop insurance companies react quickly to assess damages and issue payments. Crop insurance assistance is usually delivered within just 30 days of a claim being finalized, making crop insurance faster than disaster aid and providing farmers and the communities that rely on them with a critical safety net.

Private-sector crop insurers spend millions on research, training, and new technology to constantly improve efficiency and help farmers better adapt to the changing climate.

Not only that, but the dynamic nature of crop insurance and the strong partnership between crop insurers and the Federal government means that the program can quickly adapt to reflect farmers’ risks and the voluntary adoption of proven climate-smart agriculture practices.

That’s why Congress has made crop insurance the cornerstone of the farm safety net. Crop insurance must be protected and strengthened in the next Farm Bill.

Farmer Support for Crop Insurance Key Theme at Farm Bill Listening Session

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Between scoops of corn ice cream and live music, farmers and policymakers gathered yesterday at Minnesota Farmfest to discuss the issues that matter most to rural America. The Listening Session held by the House Agriculture Committee presented an opportunity for farmers, lenders, and other agricultural stakeholders to outline their priorities in the upcoming Farm Bill.

One topic came up over and over again: crop insurance.

Farmers testified that crop insurance is an essential risk management tool for America’s family farmers, and they asked that it be protected and strengthened in the next Farm Bill.

“On behalf of thousands of farm families across this state, as you craft this 2023 Farm Bill, please first do no harm to crop insurance. It is the cornerstone of the farm safety net,” said Richard Syverson, President of the Minnesota Corn Growers Association.

Syverson also warned the committee to not be misled by false promises of “reforming” a crop insurance system that works.

Tom Haag, President of the National Corn Growers Association and a fourth-generation farmer, also spoke to the value of crop insurance. Put simply: “It works, it’s proven… 96% of the corn farmers in Minnesota use it. That’s how valuable it is.”

Large swaths of Minnesota are currently experiencing some level of drought, and Bob Worth, President of Minnesota Soybean Growers Association, said that crop insurance has been an invaluable safety net. “This is going to be my third year of a drought, and if it wasn’t for crop insurance, a lot of farmers like me probably would not be surviving,” Worth said.

Worth also expressed the need to protect and strengthen crop insurance so that younger farmers can afford crop insurance coverage. Without the protection provided by crop insurance, these young farmers might not be able to secure the working capital they need to plant again another season.

“If we don’t keep our young farmers back on the farm – or get them back on the farm – farming as we know it will be gone, because us old farmers are going to have to quit sometime. So, that’s so important that we do have a great crop insurance.”

House Agriculture Committee Chairman GT Thompson (R-PA) closed the panel by putting the importance of the Farm Bill and the farm safety net into perspective:

“If American farm families fail, every American family fails. We can’t let that happen.”

Other members of Congress also recognized crop insurance as key to the farm safety net.

“We’ve been talking a lot, been visiting with a lot of groups… and we’re talking about the priorities for the Farm Bill… the one that I hear a lot is crop insurance. Making sure that that’s still a strong program.” – Rep. Michelle Fischbach (R-MN)

“It’s so important for us to remember that food security is national security. So, what we’re talking about in the Farm Bill is much more than just a simple farm program, or a crop insurance title, it’s really about food security and national security.” – Rep. Brad Finstad (R-MN)

“What I heard from you today was really, really clear on a number of topics. We’ve got to make sure that the next generation of family famers and producers have a robust crop insurance program, instead of forcing you to rely on the ad hoc programs, like we’ve done previously.” – Rep. Angie Craig (D-MN)

“I’m passionate about crop insurance, and how we have to protect it. Especially revenue insurance.” – Rep. Randy Feenstra (R-IA)

“Many of the key issues I’ve heard from my farmers and through my work on the agricultural committee, resound true here today. Some of these similarities, and we’ve heard them from almost everyone who’s come up at the mic: strengthening the farm safety net, fostering crop insurance risk management tools…” – Rep. Max Miller (R-OH)

Celebrating 100 Years of Crop Insurance Research

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Did you know this year marks 100 years of crop insurance-sponsored agricultural research? That’s right – crop insurance has supported American farmers for the last century, helping them manage risk and overcome obstacles, keeping our food supply safe and secure.

In fact, over the past 100 years, National Crop Insurance Services (NCIS) and its predecessor organizations have conducted more than 400 research projects in 35 states resulting in the development and refinement of loss adjustment procedures for 54 crops ranging from alfalfa to wild rice.

A mule-drawn cultivating team in the 1910’s. Around the time this photo was taken, the crop insurance industry started the agronomic research program that is still working today to understand the impact of nature’s perils on crops.A mule-drawn cultivating team in the 1910’s. Around the time this photo was taken, the crop insurance industry started the agronomic research program that is still working today to understand the impact of nature’s perils on crops.

 

Simulating hail with an ice blowing machine. The crop insurance industry funded the development of these machines in the 1980’s to simulate realistic crop damage for loss adjuster schools. They are still in use today.Simulating hail with an ice blowing machine. The crop insurance industry funded the development of these machines in the 1980’s to simulate realistic crop damage for loss adjuster schools. They are still in use today.

 

NCIS conducts research across the country. North Dakota is a favorite research location because it is the northernmost location for a diversity of insured crops. In the late 1970’s and early 1980’s, sunflower research was prolific in North Dakota!NCIS conducts research across the country. North Dakota is a favorite research location because it is the northernmost location for a diversity of insured crops. In the late 1970’s and early 1980’s, sunflower research was prolific in North Dakota!

 

Farming in 2023 is very different from farming 100 years ago, but crop insurance is continuing to adapt to best serve farmers. Over the years, the crop insurance industry has invested millions in new technology and precision data to better serve America’s farmers.

NCIS’ agronomic research has also grown with the rise of Land-Grant University research, keeping abreast with new farming practices, changing weather patterns, and technological advances that often change how crops respond to plant damage.

In fact, the ability of crop insurance to adapt to the changing climate is one of its core strengths.

Crop insurance is the cornerstone of the farm safety net. That is why we are committed to helping farmers make the best decisions for their farms while maintaining the integrity and actuarial soundness of crop insurance.

Science is at the core of agriculture. And agriculture is at the heart of America.

Farmer Participation in Crop Insurance Key to Farm Safety Net

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Every day, farmers spend long hours working the land or caring for their livestock so they can provide high-quality food at an affordable price for millions of Americans across the nation. This amazing feat would not be possible without the critical safety net that crop insurance provides.

However, instead of wanting to encourage more farmers to participate in crop insurance to help shoulder risk, some activist critics want to reduce crop insurance discounts for farmers, or even prevent farmers from managing their risk with crop insurance by imposing arbitrary limits on farm income. Excluding some family farmers from the farm safety net would put smaller farms — and our national food security — in jeopardy.

This is not sustainable or beneficial for our country’s food system. Instead, Congress must strengthen crop insurance in the next Farm Bill so that it works for more farmers, more crops, and more acres.

National Crop Insurance Services (NCIS) has released a new video highlighting that crop insurance is affordable, accessible, and adaptable – and limiting coverage will hurt both farmers and taxpayers.

Watch the new video here and learn more about how crop insurance protects farmers and our food supply by visiting CropInsurance101.org.

The Essential Strengths of Crop Insurance

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Crop insurance helps make America’s farmers and ranchers world leaders in agriculture, allowing them to stay competitive and be more innovative. It also helps them sleep better at night knowing that, should the unexpected happen, they will have the financial security to stay in business.

In short, crop insurance keeps America growing.

Here are six reasons why crop insurance is an essential tool for America’s farmers and ranchers:

Provides an Individualized Risk Management Solution

Unlike many other farm programs, crop insurance is not a one-size-fits-all product. Instead, protection is personalized to fit an individual farmer’s risk management needs while considering the type of coverage needed and the crops being grown. There are 13 private-sector crop insurance companies that deliver crop insurance, all driven by competition to meet farmers’ needs.

From the Farm: “I love crop insurance. It works great for our farm… The fact that it’s individualized, its reactive… It’s fantastic.” – Eli Dean, Ohio Organic Farmer

Strengthens American Food Security

Every American relies on farmers to provide a secure food supply, and family farmers depend on crop insurance to keep growing after disaster. Crop insurance also gives farmers the confidence to make long-term investments in the health of their farm and in efficient production methods that support the health of the planet.

From the Farm: “An effective safety net is vital. It should give us farmers confidence to put out a crop and know that we can keep the lights on when hard times hit.” – Caleb Ragland, Kentucky Soybean Grower

Requires Farmers to Share in the Risk

Crop insurance requires farmers to invest in their own protection and share in the risk. Last year, America’s farmers collectively paid $6.8 billion to purchase crop insurance premiums and shouldered losses through deductibles. The government discounts crop insurance premiums to make crop insurance affordable.

From the Farm: “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 [discount] reduced in this next Farm Bill.”  – Jake Isley, Michigan Soybean Grower

Adapts to the Changing Climate

As farmers face increasing challenges due to climate change, the safety net provided by crop insurance is their first line of defense. 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 and can be quickly adjusted to meet the changing needs to farmers.

From the Farm: “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 droughts, floods and extreme weather.” – Allyson Maxwell, Michigan Corn, Sugarbeet, Soybean and Wheat Farmer

Delivers Aid Quickly to Keep America Growing

The public-private partnership between the Federal government and private crop insurers increases efficiency and ensures that aid is delivered quickly — often within 30 days of a finalized claim. 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.

From the Farm: “Mostly I want a tool that I can rely on and plan around, rather than a program of ad hoc relief or a legislative fix. It’s a guaranteed safety net I can count on without congressional intervention.” – Marc Arnusch, Colorado Grain Farmer

Helps Farmers Secure Credit

Farming is not only risky, but it is capital-intensive. Many farmers must take out operating loans to have the financial means to plant a crop, and most lenders require that farmers have crop insurance. Having access to affordable crop insurance is particularly critical for young and beginning farmers who do not have access to substantial capital and must rely on credit.

From the Farm: “Anybody you bank with now, they’re going to ask if you have crop insurance and at what level, because that makes you bankable to them—they want protection just like you want and need protection.” – Zac Harris, Oklahoma Farmer

Crop Insurance by the Numbers

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Crop insurance is the cornerstone of the farm safety net. Its unique public-private partnership is trusted by America’s family farmers and supported by voters. By delivering aid quickly when disaster strikes, crop insurance keeps family farmers growing, drives the rural economy, and supports our national food security.

National Crop Insurance Services has put together 50 fact sheets highlighting the importance of agriculture and demonstrating how crop insurance keeps your state growing. Let’s break down crop insurance by the numbers.

490 Million Acres

Crop insurance protects more than 490 million acres. These acres represent thousands of farming families. Each farm is an integral part of our nation’s food supply and our economy.

130+ Crops

Crop insurance covers 136 crops and 604 varieties with 36 different plans of insurance. Farmers across the country count on the personalized safety net provided by crop insurance.

$6.8 Billion

Crop insurance requires farmers to invest in their own protection and share in the risk. Last year, America’s farmers collectively paid $6.8 billion to purchase more than 1.2 million crop insurance policies.

30 Days

The public-private partnership between the Federal government and private crop insurers increases efficiency and ensures that aid is delivered quickly, generally within 30 days of a claim being finalized.

336 Million

The number of Americans who benefit from having a bountiful supply of grown-in-America food. Crop insurance is necessary to protect the world’s most affordable and safe food and fiber supply.

Find your state fact sheet at CropInsuranceInMyState.org.

Farmers, Crop Insurance Earn Voter Support

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Farmers put food on our tables, clothes on our backs, and keep our economy moving forward.

It’s no wonder then that nearly 80% of Americans have a favorable view of farmers.

Moreover, 91% of voters agree Federal spending on support for farms and farmers is very or somewhat important. In other words, more than nine in 10 Americans support the farm policies that protect the men and women who produce our food and grow our economy — that includes crop insurance.

National Crop Insurance Services (NCIS) has released a new video highlighting its findings from a national survey of registered voters.

Family farmers and family farms depend on crop insurance. They trust crop insurance to help them manage the unique risks of farming.

Voters, too, trust crop insurance’s public-private partnership.

Three-quarters of voters support the government giving farmers a discount on the crop insurance policy they purchase from a private company, which pays claims only in the event of bad weather or low prices.

Although the government provides a discount to farmers to ensure crop insurance remains affordable, farmers are still required to share in the risk and must pay about 40% of the crop insurance premium. Last year, farmers paid $6.8 billion out of their own pockets for crop insurance.

Watch the new video here and learn more about how crop insurance protects farmers and our food supply by visiting CropInsurance101.org.

Supporting Our Communities

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Crop insurance is about more than just crops. Crop insurance supports our farmers, farmers feed America, and agriculture supports the economic health of our communities.

Family farmers are the backbone of rural America – 98% of farms are family operations. Crop insurance helps keep these families growing after disaster, ensuring that they can keep supplying America with an abundant supply of food and fiber.

“Without crop insurance… this farm would not still be here. It would be gone.” – Brian McClam, 7th Generation Farmer

“Crop insurance has become so vital…no matter what happens in this coming crop season, I will have the ability to pay my bills, to keep my workers employed, and to be able to continue this this family farm that has been here for over 100 years.” – Brett Anderson, Farmer and Crop Insurance Agent

These family farmers do more than just grow our food. They invest in their communities. Agriculture and its related industries contribute more than $1 trillion annually to our economy, providing more than 21 million jobs, powering small-businesses, and supporting public services.

Crop insurance supports the entire rural economy by providing a strong and secure farm safety net, and quickly delivering aid to farmers when they need it.

And what does this cost the federal government? The federal government spends less than a quarter of 1% of its budget on the farm safety net, including crop insurance. Crop insurance is a more than worthwhile investment to ensure America’s farmers can continue providing us all with food and economic opportunity.

You can learn how agriculture supports YOUR state by visiting CropInsuranceInMyState.org.

What Happens When There is a Loss?

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You’re a farmer and your worst nightmare has just come true.

After investing time, energy, and money into growing a crop, a tornado has destroyed your harvest. Or a drought sapped all the moisture from your fields. Or flooding meant you never had the opportunity to plant in the first place.

There are a million and one things that can go wrong on a farm. But what happens after a disaster?

When disaster strikes, a farmer who holds a crop insurance policy starts by contacting their crop insurance agent. The agent then submits a claim, or notice of loss, with the Approved Insurance Provider (AIP) who holds the policy. There are 14 private-sector AIPs authorized to sell and service Federally regulated crop insurance in the United States.

The AIP then sends a trained and licensed crop insurance claims adjuster to verify the loss. These skilled adjusters quickly and accurately assess damages and calculate losses based on that individual farmer’s actual loss, not the severity of the overall disaster event. Delivering aid based on actual losses protects farmers, ranchers, and taxpayers alike.

Once the claim is finalized – usually in just days or weeks, thanks to private-sector efficiency – the farmer receives an indemnity check. But this isn’t a windfall payment that will make the farmer whole. It enables them to keep on farming, and plant again the following year.

One of the key components of this entire process is that it is data-driven. Crop insurance claims adjusters determine losses based on a farmer’s actual production history. Crop adjusters also use industry-wide standardized loss procedures, which are based on 100 years of ongoing scientific research. Since 1923, National Crop Insurance Services (NCIS) has funded this agronomic research at land-grant universities. In 2022 alone, NCIS funded 12 research projects in 11 states.

In addition, 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.

And service is really at the heart of crop insurance.

Disasters can strike at any time and climate volatility threatens America’s farmers. That is why Congress must maintain a strong crop insurance program.

A Personalized Plan

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There are more than two million farms in the United States, and each one is different. America’s farmers and ranchers raise a wide variety of grains, fruits, vegetables, fiber, and livestock to feed and clothe America.

Each of these farms has a different risk profile, requiring a unique risk management plan.

Some are multi-generational farms with secure lines of credit, while others are brand-new farms.

There are farmers growing row crops, such as corn and soybeans, and there are farmers growing specialty crops, such as fresh produce or nuts. Some farmers and ranchers raise livestock or grow forage for feed.

Even the possibility of disaster is different from farm to farm, ranging from drought to derechos and hail storms to hurricanes.

That’s why crop insurance provides farmers with a personalized plan.

Unlike many other farm programs, crop insurance is not a one-size-fits-all product. Instead, protection is personalized to fit an individual farmer’s risk management needs while considering the type of coverage needed and the crops being grown.

There are thousands of crop insurance options, policies, and products for farmers to choose from.

For example, a farmer growing row crops might choose a Revenue Protection plan that provides protection against a loss of revenue caused by low prices, low yields, or both. On the other hand, a farmer who is growing many different types of vegetables or other specialty crops may choose to purchase Whole Farm Revenue Protection. This policy allows farmers to insure a variety of crops at once.

In both scenarios, farmers receive crop insurance coverage at a discount, but must still pay 30-40% of their premium. The coverage that a farmer chooses determines how much of a discount they receive. If farmers choose to take on more risk through lower crop insurance coverage, then they will receive a smaller discount.

Crop insurance also helps beginning farmers and ranchers take on the challenges of farming by providing them with an additional premium discount.

Farmers then receive assistance only in the event of a verified loss. They must also pay a deductible based on the amount of coverage they have chosen.

In other words, farmers share in the cost of their own safety net, acting as a deterrent to risky behavior.

When purchasing crop insurance prior to planting, farmers work with a trained and licensed private-sector crop insurance agent. The crop insurance agent works to understand the entire picture of the farm, and any potential perils, and then helps the farmer select the appropriate crop insurance coverage.

Crop insurance agents are an essential part of the process. South Carolina agent Ben Tillman became a crop insurance agent because he was passionate about helping farmers.

“With crop insurance, in my experience, it’s more of a personal relationship. It’s not just a business relationship. We try and take a consultative approach with our farmers and make sure they understand exactly how crop insurance works and really be a voice for them.”

By providing a personalized risk management plan, crop insurance acts as a safety net for all American farmers. No wonder crop insurance is trusted by farmers and ranchers in all 50 states.

Keep America Growing

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America’s farmers grow fresh fruits and vegetables for our dinner tables. They grow the ingredients used in millions of food products. They raise livestock and produce dairy. And farmers grow the cotton, flax, and hemp that clothe us.

Farmers touch our lives in many ways, every single day. National Ag Day recognizes and gives thanks for the contributions of America’s food and fiber producers.

Everyone needs farmers, and farmers need affordable and reliable risk management tools. The farm safety net helps farmers survive the challenges of agriculture and adapt to our changing climate.

Crop insurance is the cornerstone of the farm safety net. It protects more than 490 million acres, ensuring that America’s farmers and ranchers can keep producing a safe and affordable supply of food. Importantly, crop insurance supports a healthy farm economy and contributes to the stability of America’s economy.

We all have a vested interest in the success of American agriculture, and crop insurance keeps America growing.

National Crop Insurance Services has invested time in the field, talking to the farmers and ranchers who grow our food and fiber. Farmers like Michael Moore in North Carolina, a third-generation farmer who takes pride in growing healthy food for his community.

Or farmers like Erica Wuthrich, who farms in Iowa with her husband Brent. “Farming isn’t an easy life, but it’s a wonderful life,” Erica said. “And crop insurance helps keep us in our farming operations. My husband and I are young farmers, so if we didn’t have that it would be really hard to farm.”

Watch more real stories from real farmers, crop insurance agents, and crop insurance adjusters on YouTube.

Thank you, farmers! Today and every day!

President’s Budget Reaffirms Crop Insurance is Critical to Farm Safety Net

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President Joe Biden released a proposed Fiscal Year (FY) 2024 budget last week 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 2024 Budget follows a letter sent to OMB and the Secretary of Agriculture by more than 60 farming, banking, and conservation organizations asking that the administration protect crop insurance from harmful budget cuts.

“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 the Federal crop insurance policy purchased with their hard-earned dollars,” the organizations wrote.

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 on the President’s FY 2024 budget:

“Crop insurance protects more than 490 million acres of farmland and empowers farmers with the tools they need to manage the risks of farming. As agriculture faces new and increased challenges, including the threat of climate change, crop insurance is a front-line defense for our national food security. The administration has recognized the importance of crop insurance as a critical part of the farm safety net by fully funding crop insurance in its FY 2024 budget.

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

  1. Delivering aid quickly and efficiently through private-sector crop insurers, giving farmers the confidence and the capital necessary to navigate disaster.
  2. Requiring farmers to invest in their own protection. Last year, farmers spent $6.8 billion to purchase crop insurance and then shouldered a significant portion of losses through deductibles.
  3. Complementing 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 President Biden and his administration for fully funding crop insurance in its proposed budget. We urge Congress to follow suit by protecting and strengthening crop insurance so that it works for more farmers, more crops, and more acres.”

Congressional Ag Leaders Praise Crop Insurance

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Congressional agriculture committee leaders praised the Federal crop insurance program in recorded remarks played yesterday at the crop insurance industry’s 75th annual convention.

Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) and Ranking Member John Boozman (R-AR, and House Agriculture Chairman Glenn “GT” Thompson (R-PA-15) and Ranking Member David Scott (D-GA-13) will be the chief architects of the 2023 Farm Bill.

“Farming is one of the riskiest businesses out there. Our farmers need risk management tools they can count on to protect their crops and way of life,” Sen. Stabenow said. “Crop insurance is the number one risk management tool for producers.”

Sen. Stabenow cited the timely and responsive nature of crop insurance as a critical component of the program, especially as farmers stand on the front lines of climate change.

“As farmers increasingly face threats from the climate crisis, we need to think about how to expand the crop insurance safety net, so farmers don’t have to rely on ad hoc programs. We need to return to the principles of risk management as we work to protect and to expand crop insurance and pass this Farm Bill,” she said.

Sen. Boozman also spoke to the indispensable role of crop insurance in the farm safety net, calling cuts to crop insurance in the Farm Bill a “bad idea.”

“As much as the Farm Bill is a safety net for our farmers, it’s also a safety net for rural America. At its core, so is crop insurance,” he said.

Crop insurance protects more than 490 million acres of American farmland and keeps America growing when disaster strikes.

“I’m interested in looking at ways to improve crop insurance. If we can get more folks participating in higher levels of coverage, we can break the cycle of ad hoc aid,” Rep. Thompson told the gathered crop insurers and industry stakeholders. “Crop insurance coverage is reliable, timely, and predictable.”

“Our crop insurers are so important,” Rep. Scott said. “[Crop insurers] make sure that we maintain the United States having the greatest and the best agriculture system in the world.”

Crop insurance is the cornerstone of the farm safety net. Learn more about the importance of crop insurance by visiting CropInsuranceInAmerica.org.

Crop Insurance Protects 490 Million Acres, Creating Opportunities for Agriculture

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Crop insurance protected more than 490 million acres and $173 billion in liabilities in 2022, providing farmers with a valuable risk management tool, supporting a secure food supply, and contributing to the health and stability of the American economy.

“We’re proud to offer protection to the vast diversity of American agriculture,” said Kendall Jones, chair of National Crop Insurance Services (NCIS) and president and CEO of ProAg, in her remarks today to the crop insurance industry’s annual convention.

This year marked the convention’s 75th anniversary, and Jones praised the modern, data-driven, and responsive nature of crop insurance, while outlining an innovative future for the industry.

Crop insurance is designed to provide opportunity for farmers, and Jones urged Congress to consider “a Farm Bill that further strengthens crop insurance, so that it works for more farmers, more crops, and more acres.”

A strong crop insurance program is critical as farmers work to improve their resiliency and make investments in the health of their land.

“Our farmers are on the front lines when it comes to weather disasters, and it is important that we maintain a strong and consistent crop insurance program so that our food supplies and economic stability aren’t a casualty of climate change or volatile global events,” Jones said.

Jones explained that since its beginning, the crop insurance industry has been built on constant data analysis and actuarial soundness. Farmers also invest in their own safety net, paying more than $6.8 billion in crop insurance deductibles in 2022 to protect their crops.

“The crop insurance industry is protecting the American farmer while being a good steward for the American taxpayer,” she said.

The crop insurance industry has also invested heavily in science, with 2023 marking 100 years of agronomic research conducted by crop insurers to improve policies and procedures. Jones emphasized that the industry would continue to invest in new technology to better serve America’s farmers, champion initiatives to empower underserved farmers, and partner with farmers on conservation efforts.

In his remarks, Tom Zacharias, president of NCIS, challenged the crop insurance industry to leave agriculture better than they found it.

“It is only through collective work towards a better, stronger farm safety net that the crop insurance industry has been able to leave our individual mark on agriculture. For 75 years, we’ve worked together to build a data-driven and affordable crop insurance program,” Zacharias said.

Zacharias also thanked former House Agriculture Committee Chairman Michael Conaway and Frank Lucas for leaving agriculture and crop insurance better than they found it through their leadership.

Crop Insurance Earns Senate Praise

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Crop insurance has earned the trust of America’s farmers, and on Thursday, it earned the praise of the Senate Agriculture Committee. A bipartisan group of senators commended the program during a Farm Bill hearing, citing its importance in the face of rising challenges on America’s farms.

The Honorable Robert Bonnie, Under Secretary for Farm Production and Conservation, and Administrator Marcia Bunger, Risk Management Agency (RMA), testified on crop insurance on behalf of the U.S. Department of Agriculture (USDA). They echoed the need for a strong farm safety net.

“Crop insurance remains a critical – a vital – risk management tool for our producers. RMA is expanding coverage to more crops and producers than ever before,” Bonnie said.

Several senators noted the need to strengthen and expand crop insurance to better serve more farmers, such as specialty crop producers. The crop insurance industry is committed to working with Congress to ensure that all farmers have the tools they need to manage the highly specialized risks of farming and protect the security of the U.S. food supply.

Here’s what the Senate Agriculture Committee is saying about crop insurance:

“[Crop insurance is] such an important corner of our safety net.”

– Sen. Amy Klobuchar (D-MN)

 

“No doubt, without crop insurance, without Title I funding, many farmers would be out of business.”

– Sen. Roger Marshall (R-KS)

 

“Despite the USDA’s farm safety net, producers are still struggling to break even due to skyrocketing inflation, rising input costs for food, fuel, and fertilizer. As Farm Bill discussions take place, we want to ensure a strong crop insurance program that maintains the public-private partnership made up to help our producers manage risk.”

– Sen. Tommy Tuberville (R-AL)

 

“A vital purpose of the Farm Bill is to provide a safety net to producers to ensure that they’re able to protect their farms and livelihood. Tools like crop insurance are vital in that mission.”

– Sen. Ben Lujan (D-NM)

 

“It should be a top priority of this Congress to protect crop insurance. Crop insurance is the quickest and most efficient way to provide aid to our farmers and ranchers after disaster.”

– Sen. Deb Fischer (R-NE)

 

“Crop insurance and commodity programs must be maintained and where possible, improved, in the next Farm Bill to help producers face challenges from high inflation and input costs to adverse weather events.”

– Sen. John Thune (R-SD)

 

“Crop insurance is the most effective and best risk management tool… It’s critical that we maintain that safety net that is affordable, as well. It is especially important as we consider the young, and beginning, and small farmers.”

– Sen. Joni Ernst (R-IA)

Michigan Crop Insurance Adjusters, Agents Play Key Role in Food Supply

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Larry Westerhoven knows apples.

As a crop insurance adjuster in Michigan, it’s his job to say what a crop is worth after hail or frost.

“If a guy has problems with his crop, I go out and appraise it,” he said. “I put a value on that crop. Most of these guys around here raise apples for the grocery stores, bagged apples or tray packs or this and that. So, I’ll make an appraisal on that and put a grade on the apples and then they make a decision what they want to do with it.”

Larry was one of several crop insurance adjusters and agents National Crop Insurance Services visited on our recent trip to Michigan.

Scott Colville’s family has been selling crop insurance since 1967. He takes pride in helping farmers stay in business after weather disasters.

“The reason crop insurance even exists is to help the American people and keep the food prices down,” he said. “And you can only do that if the farming community is able to farm and continue farming in a bad year. I would like to see Congress protect what we have in crop insurance and expand it.”

Colton Geiger, a field marketing representative, enjoys working with insurance agents to make sure they understand the latest products and the changes in the industry. He comes from a farming family.

“I think the work really matters in terms of working with farmers and making sure that they can keep farming for years to come,” he said. “Something that I grew up with, you know, in my family, just carrying that farming tradition on down the line.”

Back on the apple farm, Larry said its gratifying to help a farmer make a good decision about a crop because the margins have become so slim.

He hopes Congress will maintain and expand crop insurance in the next Farm Bill.

“Well, I just ask Congress, do they want to eat?” he said. “You want to put these guys out of business or we don’t grow food in this nation anymore? You know, we’re still a leader in food production. I’d like to see us stay there.”

Watch these stories and more at CropInsuranceInAmerica.org.

Celebrating America’s Farmers & the Policies that Protect Them

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Brett Anderson walked the rows on his Michigan farm and inspected a strong crop of apples. He grabbed one and looked closer at a small indentation with an eye informed by 100 years of family experience.

The little indentation probably won’t mean much by harvest. Brett has seen hailstorms that beat and bruised his apples to the point where the value dropped to a quarter of what this crop may bring.

“Thankfully, this year we’ve been really blessed,” he said.

Brett’s family farm is just one of approximately two million farms in the United States. On National Farmer’s Day, we celebrate the incredible contributions of American farmers, just like Brett, and the important work that they do to feed, clothe, and fuel our nation.

Each of America’s two million farms is unique, requiring a personalized risk management tool. Thankfully, crop insurance allows America’s farmers and ranchers to create a risk management plan tailored to their needs. Crop insurance insures farms in all 50 states.

“Crop insurance has become so vital…no matter what happens in this coming crop season, I will have the ability to pay my bills, to keep my workers employed, and to be able to continue this this family farm that has been here for over 100 years,” Brett told National Crop Insurance Services on a recent trip to Michigan.

Brett was just one of several farms that we visited to capture the Real Stories of America’s farmers and crop insurance agent and adjusters.

Shelly Hartmann enjoyed a handful of ripe blueberries while inspecting the bushes on her farm.

“The thing I love about blueberries is that, you know, it’s nature’s perfect fruit. There’s no waste, it’s 100 percent consumable,” she said.

Shelly believes Congress should maintain crop insurance as an affordable and available risk management tool in the next Farm Bill. She relies on it at her farm. “Crop insurance is really a big tool that we use here to help us offset any unexpected weather events, production losses, market loss as well,” she said.

Vegetable farmer Travis Horkey pulled the tractor forward as his crew harvested big green bell peppers, loading them bucket by bucket into the cart. Crop insurance is an important tool in helping him with the challenges of farming.

“You never know what’s going to come at us,” Travis said. “We could have a drought all spring and summer followed by a flood in the fall just before harvest. And that would be devastating to our business and also affect our employees and our customers, our suppliers, our community.”

“I like the seasonality of farming,” he continued. “I like the challenge of just bringing all the ends together and getting the job done.”

To farmers from Michigan to Mississippi, Maine to Montana, and every state in between: thank you for getting the job done, every single day.

Crop Insurance Basics: Specialty Crops

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When you think of farming, you might first think of fields of corn sprawled across the Midwest. But America’s farmers grow many different types of fruits and vegetables, requiring a crop insurance program that is as diverse as the crops it protects.

Crop insurance is a customizable tool that allows America’s farmers and ranchers to create a risk management plan tailored to their needs. That means growers can be covered:

Crop insurance has become the cornerstone of the farm safety net and provides every farmer with access to an affordable risk management tool. A new report from the Economic Research Service (ERS) at the U.S. Department of Agriculture found that over the past two decades, the value of specialty crops protected by crop insurance has tripled. Total specialty crop liabilities have grown from $7 billion in 2000 to $21 billion in 2020. As ERS points out in their report, all farmers face risks, “but the nature of specialty crop production and marketing may heighten exposure to some of these risks.”

Crop insurance has expanded and improved over time, particularly for specialty crops or growers not adequately served by other risk management tools. For example, the 2014 Farm Bill included a new policy specifically meant to expand coverage options for diversified farming operations: Whole-Farm Revenue Protection. The introduction of Whole-Farm Revenue Protection offers diversified farmers – such as fruit and vegetable growers, and organic growers – more flexible, affordable risk management options.

Brian Campbell is a diversified produce farmer in Pennsylvania who credits crop insurance and the protection afforded by Whole-Farm Revenue Protection for his success. “If it wasn’t for whole farm revenue protection today, you know, I may not be at the size that I am,” Brian told National Crop Insurance Services.

Across the country, Lupe Guzman in California also relies on crop insurance to protect his family farming operation, which includes 1,300 acres of certified organic crops, such as avocados, lemons, mandarins, and Valencia oranges.

“By having the crop insurance, we’re able to guarantee that if for some reason we do have a bad freeze, we’ll be able to fall back on that insurance so that we can keep farming the following years,” Lupe said.

Another organic grower, Michael Sahr in Michigan, agrees that crop insurance is important to protecting his farm and our food supply. “Without crop insurance, we’d have so much devastation that the farmers would go out of business, and you would be paying a lot more money for your food,” he said.

“You could have a beautiful crop one day, and the next day, a big weather event happens, and you don’t have that anymore,” Michigan blueberry grower Shelly Hartmann said. “Crop insurance is really a big tool that we use here to help us offset any unexpected weather events.”

An untimely freeze, for example, can destroy a crop of table grapes growing at the Kirschenmann Brothers Farming Company in California. “Crop insurance gives us a little safety net,” Kenneth Kirschenmann said. “It doesn’t solve all the problems if we had a 100 percent wipeout, but it does keep us in business.”

California grower Devon Yurosek farms several tree crops, including pistachios, cherries, and pomegranates. The nature of these crops means that Devon and his family have one shot to make a good crop each year, stay in business, and keep their workers employed.

“We have to be able to pay the bills. In bad years, it’s difficult to do if you don’t have a crop on the trees. That’s where crop insurance has been a huge help to us,” Devon explained.

Produce and other specialty crops aren’t the only non-traditional crop that is covered by crop insurance. Pasture, rangeland, and forage (PRF) insurance helps farmers when they don’t receive the expected rainfall needed to keep their pastures productive for feeding livestock.

Pennsylvania farmer John Ligo turned to his PRF policy when a drought reduced his grass yield on the acres he uses to help feed his 600 head of cattle. “One of those things that we can do to manage crop production risk is crop insurance,” he said.

Farmers trust crop insurance to help them manage the highly specialized risks of farming they face today.

Farmers Praise Crop Insurance at Field Hearings

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The House Agriculture Committee recently handed farmers in Minnesota and Ohio the microphone to ask them what rural America would like to see in the next Farm Bill. A common refrain? Protect crop insurance.

We’ve compiled several highlights from these field hearings – check them out below.

Growers in both states stated that a strong crop insurance program is key in the next Farm Bill. It was named as the top Farm Bill priority for the Minnesota Corn Growers Association, the National Corn Growers Association, and the Ohio Corn and Wheat Growers Association.

As the cornerstone of the farm safety net, it’s clear that crop insurance has earned the overwhelming trust of America’s farmers.

“Crop insurance has demonstrated itself to be an invaluable tool for wheat farmers in Ohio and across the country where we see more frequent weather disruptions and unprecedented increase in prices for inputs,” Ohio farmer Paul Herringshaw said.

The uncertainty of the current farm economy and the financial stress of high input prices were common themes in the hearings.

“High fuel, high crop inputs, economy-wide inflationary pressures, these are all chipping away at margins. Given this, the Farm Bill safety net and crop insurance are… very key to creating a predictable operating environment for these farmers,” explained KC Graner, the Senior Vice President of Agronomy at Central Farm Service, headquartered in Minnesota.

Minnesota’s hosting farmer, Bruce Peterson, cited a number of reasons why crop insurance is important, including the premium discount provided for young farmers. This additional discount for young farmers not only makes crop insurance affordable, but it also allows them to secure an operating loan.

“Once they can take that that crop insurance coverage to their lender, that’s a key point and especially important now with our costs continuing to ratchet higher, much more expensive to put a crop in now than many years ago,” Peterson explained.

Eric Hokanson deals with both sides of the farm and finance equation, growing soybeans in Minnesota while working at farm credit cooperative Compeer Financial. “[Crop insurance] is vital to all sizes and scopes of farms here in the U.S. This allows farmers to hedge their risks and market their crops. This is especially important to young farmers like myself to be able to have a guaranteed source of repayment when disaster strikes or Mother Nature decides to not cooperate,” he testified.

Congress also heard from organic farmers, including Ohio grower Eli Dean, who praised the individualized and responsive nature of crop insurance. “[Crop insurance] works great for our farm. It works great for our communities… if we have a disaster, we are compensated for it quickly.”

We appreciate Congress taking the time to travel the country to hear directly from America’s farmers. Want to learn more about crop insurance? Visit CropInsuranceInAmerica.org to watch more Real Stories from America’s heartland.

Crop Insurance Keeps Farmers Fighting

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Weather is one of a farmers’ top concerns. Just enough sun and rain will power a plant, resulting in a good yield. But too much sun and not enough rain, or too much rain and not enough sun, and a farmer might soon be counting his losses.

The challenges presented by weather volatility was something that we heard repeatedly from farmers in hurricane-prone South Carolina. Fifth-generation farmer Landrum Weathers said that “every year that we don’t get a named storm that hits here is a good year.”

Landrum farms corn, peanuts, soybeans and cotton while also working as a crop insurance agent with the Agriliance Insurance Group. He said choosing to purchase crop insurance is not a difficult decision. It helps sustain his farm, so he can keep producing food and fiber.

“Crop insurance basically ensures that the growers are going to be farming next year. That means that our country doesn’t have to call somebody else, I don’t care who, to get food,” Landrum said.

J.C. Carroll, who founded Agriliance Insurance Group alongside Ben Tillman, echoed Landrum’s comments on food security, explaining “it’s important for farmers to protect themselves with crop insurance. I think that crop insurance is our best safety net… It gives us food security.”

Weather was also top of mind for Johnny Watts, a fourth-generation farmer who grows corn and soybeans and raises cattle. “Every time a storm makes up out in the Atlantic, you kind of hold your breath and, you know, is this going to be it.”

Each storm brings with it a feeling of hopelessness. Farmers can prepare for every scenario, but they can’t hold back Mother Nature.

“You could have a great crop today. Tomorrow, you may not,” Johnny said.

“No farmer wants to have a loss,” explained Brian McClam, a seventh-generation farmer. Brian grows cotton, soybeans, and corn, and has had a couple close calls when it comes to natural disasters.

“Without crop insurance… this farm would not still be here. It would be gone,” Brian said.

Several years ago, seventh-generation farmer Neal Baxley watched as a foot and a half of rain washed away the crops he was about to harvest. An entire growing season, and the expenses and inputs and time that went into that season, gone.

Crop insurance helped soften the blow. Neal said there is a misconception that crop insurance covers a farmer’s entire loss. “It’s not going to make him completely whole but it’s a tool that can try to help him get him through to the next year.”

As Johnny Watts said, “You live to fight another day because of crop insurance.”

Watch these stories and more at CropInsuranceInAmerica.org.

American Farmers Feed the World

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“If you really want to get in the weeds or, in a lot of cases, in the dirt with crop insurance, you need to go out to the field.”

National Crop Insurance Services recently did just that, traveling to North Carolina to capture the real stories of both the farmers who rely on crop insurance and the people who provide coverage advice. That’s where we met Ruth Fulford, a crop risk advisor and care consultant with Flatlands Insurance Group.

Ruth, who was the recipient of the 2022 Crop Insurance Outstanding Service Award for outreach to limited resource and socially disadvantaged farmers, is one of the many agents who write crop insurance policies in North Carolina. These policies protect crops such as corn, soybeans, wheat, sorghum, cabbage, sweet potatoes, sage, peanuts, produce and more. Collectively, crop insurance protects 3.5 million acres and more than $2.1 billion worth of crops in North Carolina.

Farmers across the state trust crop insurance to help them manage their risks. Farmers like Rena Eure, who owns a family farm with her husband and son. “What I love about farming is just being able to be out in nature and put a seed in the ground and watch it grow.”

The work of farming is the easy part, Rena told us. It’s the weather risks, financial stress, and supply chain challenges that make farming difficult. And there is a lot riding on the line.

“If we don’t have farmers, we don’t have food or the fiber you know, for the world basically,” Rena said.

Cattle rancher Gayle Smith pointed out that farmers do what they do because they love it. “We feel good about what we do because we provide a quality product for a world, and we willingly make those sacrifices.”

Even though she raises livestock, Gayle considers herself a grass farmer, first and foremost, with the cattle acting as large lawnmowers. But when Mother Nature doesn’t cooperate, and Gayle doesn’t have enough grass or hay to feed her cattle, that’s when she turns to crop insurance.

“It’s been a tremendous help. It is a very affordable tool that allows you to minimize or manage some risk and have a small return if it if the weather goes against you,” Gayle said.

This message was echoed by Charlotte Vick, who grows row crops alongside her parents on the farm they started with just 25 acres in 1975. “That’s really the main reason that we carry the crop insurance. To try to protect against the weather because you know, we’re at the mercy of Mother Nature.”

America’s farmers and ranchers are the foundation of our food supply and critical drivers to the farm economy. The Moore family understands this better than most. Michael is a third-generation family while Antoine is a branch loan officer at AgCarolina Farm Credit and farms with his father.

“Crop insurance helps me relieve the stress knowing that if something happened, disaster happened on the farm, I do have something to fall back on. That I won’t lose, completely, lose everything,” Michael said.

Antoine, on the other hand, pointed out that having a solid risk management plan is a critical consideration for lenders, giving them more certainty when approving farm loans. “Certainly, that makes a huge impact, not just on that farmer, but also on that rural community that relies on that farmer to produce a crop,” Antoine said.

Watch these stories and more at CropInsuranceInAmerica.org.

A Farm Disaster – Now What?

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The unthinkable has happened and torrential rain has prevented a farmer from planting, or an unexpected hailstorm has destroyed a growing crop. Now what?

Unlike other farm aid programs, crop insurance provides assistance as determined by an individual farmer’s actual loss, not by the severity of the overall disaster event. So, following a disaster, private-sector crop insurance claims adjusters quickly and accurately assess damages and calculate losses. Delivering aid based on actual losses protects farmers, ranchers, and taxpayers while adhering to one of the key principles for an effective farm safety net.

When a farmer files a claim with their agent, its first stop might be the desk of Danny Thomas, a claims supervisor with Crop Risk Services. Danny joked that although he loves helping his farmers, he always hopes that he doesn’t have to see them a second time.

“Our job’s not only to get the indemnity paid correctly, but to give the insured peace of mind that everything is done correctly on time and that they’re taken care of,” Danny said.

The helping hand provided by adjusters is critical to helping farmers navigate the stress that comes with a crop loss.

“As adjusters, we can try our best to give them peace of mind and we try to let them know that it’s going to be okay,” said Kelsey Eskrigge, an adjuster in Proctor, Arkansas.

“Farmers will tell you I have crop insurance for a peace of mind, you know, farming is a gamble and it’s part of their risk management and helps them sleep at night. So, I think it’s very vital to keep U.S. agriculture in a stable and safe place,” Kelsey added.

Jeff Ray, a regional claims manager, has a long history in agriculture and he wasted no time in explaining just how vital crop insurance is to the farmers that he serves.

“The Federal crop insurance program is a must with the high cost of inputs, the uncertainty of the markets, the uncertainty of the weather. These farmers have got to have risk protection and a risk plan in place for them to be sustainable.”

Thanks to the unique public-private partnership that is the foundation of crop insurance, agents, adjusters, and crop insurance companies work together with the federal government to quickly deliver aid to America’s farmers. This is important when you consider the high-stakes nature of farming and the incredible investment that farmers put into growing our food and fiber.

That’s why crop insurance must remain affordable, widely available, economically viable, and adaptable to the changes of tomorrow.

Watch these stories and more at CropInsuranceInAmerica.org.

People Behind the Policies: Crop Insurance Agents Keep America Growing

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We’ve been sharing the stories of the farmers who rely on crop insurance, but there’s another part of the equation that helps make crop insurance a success: private-sector agents.

Before planting a crop, farmers work with private-sector crop insurance agents to tailor a customized risk management plan that fits their unique needs. This individualized approach is one of the essential strengths of crop insurance.

Dustin Faulkner, a crop insurance agent in Jonesboro, Arkansas, starts the crop insurance conversation with his farmers by outlining the basics of crop insurance and how yield and coverage levels can affect policies.

It’s always difficult to have a farm hit by disaster, but Dustin takes pride in ensuring that his customers are covered should the worst happen.

“To be able to make that phone call in that time of need and let them know that the policy is there for them…you almost feel them sometimes have a little relief knowing that that process is in place. And they did have adequate coverage for their needs.”

It’s no wonder that Arkansas’ farmers trust crop insurance. Last year, crop insurance covered 5.5 million acres in Arkansas, and Arkansas farmers collectively paid $58.9 million out of their own pockets for coverage.

Agent Sam Walker in Brinkley, Arkansas, enjoys knowing that he is making a difference in the lives of his farmers and the economic health of his community. “Everything in Brinkley revolves around agriculture one way or another,” he said. “That’s the only way that we can make it around here is with farming.”

In many of these rural towns, agents are an integral part of the farming community.

“Crop insurance is something I enjoy,” said Lenny Adams, an agent at the Bank of England Insurance Agency in England, Arkansas. “I enjoy going out and sitting on the tractors and the combines and talking with the farmers and gathering data as well as taking care of them on their crop insurance needs.”

The Bank of England is the only bank left in the small town of 3,000 people. That’s why Lenny is passionate about ensuring that farmers have a strong farm safety net. He knows first-hand the financial risks that come with farming as well as how much farmers give back to their rural community.

If the farmers went under, “we’d probably lose every business we have in town.”

Watch these stories and more at CropInsuranceInAmerica.org.

Crop Insurance Protects Farmers from Sea to Shining Sea

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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

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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

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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

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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

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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.

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

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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.”

What Farmers Are Telling Congress About Crop Insurance

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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

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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.

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

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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

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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

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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.

Soybean Leadership Gives Crop Insurance High Marks

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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.

Responding to Drought: Crop Insurance’s Proven Track Record

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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

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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

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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

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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

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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

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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.

USDA Chief Actuary Highlights Crop Insurance Strengths

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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.

Crop Insurance Basics: Actuarially Sound

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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.

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

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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

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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

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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.

Texas Farmer Hopes for Rain, Counts on Crop Insurance

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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.