Congress Supports Crop Insurance

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With a one-year extension of the Farm Bill signed into law, Congress is turning its attention to drafting a five-year Farm Bill that strengthens the farm safety net. As the cornerstone of this safety net, crop insurance has received a lot of attention lately. We’re proud of this public-private partnership that keeps family farmers on the farm and saves taxpayer money by quickly delivering aid for verified crop losses.

Let’s hear it from the Hill:

“Federal crop insurance…is one of the most successful examples of a public-private partnership in existence. Farmers willingly pay significant premiums for crop insurance coverage because it provides reliable assistance when disaster strikes. This timely indemnification doesn’t just benefit farmers, it bolsters rural economies by ensuring that producers can pay back their lenders, retain their employees, and get back on their feet to farm again the following season.” – Rep. Glenn “GT” Thompson (PA-15-R), Chairman of the House Committee on Agriculture

“Leave crop insurance alone. Just keep it going the way it is… that’s what I’ve been hearing from farmers.” – Sen. Chuck Grassley (IA-R)

“[Crop insurance] works pretty darn good right now.” – Sen. Jon Tester (MT-D)

“Crop insurance has proven to be a bedrock risk management tool… I firmly believe an opportunity exists to build on the program’s success by making higher coverage levels more affordable to producers across the country. This will help alleviate the need for ad hoc assistance programs, saving money while strengthening this important risk management tool.” – Rep. Michelle Fischbach (MN-7-R)

“Crop insurance and other programs… are very important in my region to help to ensure that our farmers are continuing to feed America.” – Rep. Lloyd Smucker (PA-11-R)

It’s no surprise that Congress is sharing its support for this critical risk management tool. That’s because crop insurance:

  • Protects 540 million acres of American farmland
  • Supports all farmers: large and small, conventional and organic, and specialty-crop growers and livestock ranchers
  • Delivers aid to farmers and ranchers in just days or weeks, thanks to the more than 20,000 private-sector insurance agents, adjusters, and other personnel who support crop insurance
  • Earns the trust of America’s farmers and ranchers through consistent service and risk protection
  • Keeps America Growing

Congress should work to improve crop insurance so it covers more acres, more crops, and more farmers in the next Farm Bill.

Interested in hearing real-life farmers talk about crop insurance? Watch their stories here, or follow us on Instagram.

Kansas Farmers, Agents Share Crop Insurance Stories

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We all want healthy, fresh food for our families. America’s farmers and ranchers provide that and more, for your family and families all over the world. But this wouldn’t be possible without Federal crop insurance.

“We purchase crop insurance because we just [have] to,” said Dennis Tencleve, a farmer in Mayfield, Kansas, who grows mainly wheat. “We do all we can to raise the best crop we can.”

National Crop Insurance Services (NCIS) recently spoke with Dennis and other farmers throughout Kansas to hear firsthand how and why crop insurance is so important to their farms – and to the nation as a whole. You can hear these farmers’ video stories, as well as video stories from ranchers and agents, by clicking on their names below.

“Crop insurance has been a great asset for us.” Randy Braddock, Kansas Farmer

“Crop insurance is so important. It’s designed to help the farmer if they have a complete disaster.” Andrea Knoll, Crop Insurance Agent

“Crop insurance has saved us several times.” Scott Becker, Kansas Farmer

“The reason we have crop insurance [is] to provide affordable food.” Dave Taylor, Crop Insurance Agent

“Crop insurance is just almost a necessity. It will keep you in business.” Harold Engle, Kansas Farmer

“Crop insurance has made it a little more affordable. If you have a disaster, then you don’t lose the entire farm and rely on someone else to bail you out.” Keith Strasser, Kansas Farmer

Crop Insurance Supports Farmers, Farmers Support Crop Insurance

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It was late summer when we visited Sumner Country, Kansas, where Phil White farms with his father and brother. All three farmers understand that once they put their crop in the ground, it’s out of their hands – but they also know they can rely on Federal crop insurance to get them through unplanned events or disasters.

“Crop insurance is an important safety net and an important part of our risk management toolbox because it lets us know the minimum amount of revenue we’re going to have coming to our operation in any particular year,” said Phil.

Importantly, crop insurance doesn’t just benefit Phil and his family farm. It also benefits the small communities he supports, as well as the nation as a whole.

“Having a plentiful and affordable food supply as a nation is vital to our national security,” said Phil. “[It keeps] people on our farms working [and keeps] our small communities afloat. It’s just vital.”

Over in Syracuse, Kansas, crop insurance also protects farmer Keith Brown, who grows winter wheat and sorghum on his farm. Like Phil, Keith is no stranger to the perils of farming, some years even ending up with zero crops to harvest because of severe weather. For him, crop insurance is a real game changer.

“[Crop insurance] is life changing,” said Keith. “The fact that you don’t have to worry if you’re going to be here next year. You can go to bed at night and know if you don’t have a crop, you’re still going to be here.”

Without farmers and the crop insurance policies that ensure farmers have the protection they need to grow crops year after year, communities throughout America – and the world – wouldn’t have the safe, secure, and dependable food supply they rely on to feed their families.

Craig Gigstad, a farmer in Jefferson County, Kansas who grows corn and soybeans, explains that farming isn’t just about growing the crops. It also involves navigating the challenges of agriculture and making the best choices for the land and the people who depend on him.

“The world needs our grain,” said Craig. “We’re trying to do the best job on the farm to be sustainable [and] to give our future generations opportunities to stay on the farm and produce food to feed the world.”

Bottom line: Farmers need crop insurance to feel secure in their operations. And we need farmers to feel secure in the food we eat.

Crop Insurance Vital for East Coast Farmers

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Crop insurance is essential to the success of farmers and the country because crop insurance supports American farmers, American families, and the American economy. And because crop insurance is so important, farmers have no problem expressing how much they need and rely on it.

“I want Congress to know that we have to have crop insurance,” said Delaware farmer Cory Atkins.

National Crop Insurance Services (NCIS) recently spoke with Corey and other farmers along the East Coast to hear more about how and why crop insurance is so vital to farming operations. You can hear these farmers’ video stories, as well as video stories from ranchers and agents, by clicking on their names below.

“Crop insurance is the best protection we have and to me the cheapest because Congress pays a little bit of it and the USDA pays a little bit of it and the farmer pays a portion of it. It’s fair. It covers everybody. To me, it is the best tool we have for making sure that farmers are protected when they have problems.” William Layton, Maryland Farmer

“The feeling I get as an agent when I can see the farmer can breathe again…that they’ve chosen the right coverage to say, okay, I can get up, I can make this work, I can do another day.” Jules Hendrix, Crop Insurance Agent

“We buy crop insurance primarily as a safety net for the what if.” Mark Wilson, Delaware Farmer

“Crop insurance now allows the farmer to decide what kind of protection they want.” Roy Crow, Maryland Farmer

“We buy crop insurance so we can farm next year.” Larry Jester, Delaware Farmer

“If [farmers and ranchers] couldn’t afford to have crop insurance, they probably wouldn’t be able to afford to farm. And when that happens, then our food is coming from somewhere else that we have no control over.” Donna King, Crop Insurance Agent.

 

Farmers Say Crop Insurance is a Need, Not a Want

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Not too far from Capitol Hill in Onancock, Virginia, Lynn Gayle farms soybeans, wheat, and corn. Lynn is acutely aware of the precarious nature of farming and the risk presented by Mother Nature

“We’re one storm event or one drought away from a disaster,” he told us on a recent trip to the field.

That’s why Lynn – and other farmers across the farmland that surrounds our nation’s capital – rely on the safety net provided by crop insurance.

“When I talk to individuals in the non ag community, often I hear them refer negatively regarding crop insurance … but it ensures that American agriculture is stable and not subject to failure due to the perils that agriculture faces. I’m also quick to point out that I have never, ever profited from crop insurance,” he said.

Up in Wicomico County, Maryland, Steve Hurley farms corn, soybeans, wheat, grain, sorghum, and oats. He relies on crop insurance to not only protect his crops from natural events like drought, which impacted his farm during a big drought year in 2002, but also from damage caused by local wildlife.

“The number one thing in this area would be wildlife damage, mainly deer,” he explained. “We definitely need the crop insurance to help us out navigating through these problems with wildlife issues.”

Over in Laurel, Delaware, on a 600-acre farm, first-generation farmer Cory Atkins farms vegetables and grain consisting of corn and soybeans using minimal-to-no-till and cover crop practices. He said one of the hardest parts of farming is “the extremes,” like the severe rain he experienced earlier this year that destroyed half his lima bean crop.

“I want Congress to know that we have to have crop insurance,” he said. “We got to have some way to mitigate that risk to help, you know, set a floor for farmers.”

As shown by these farmers, crop insurance is not a want but rather a need. Temple Rhodes, a farmer in Centerville, Maryland, who grows corn, soybeans, and wheat, sums this up with the following statement: “One of the things that I would probably say to Congress is 99.9% of the farmers out here, we don’t ever want to collect crop insurance.”

Crop Insurance is the Cornerstone of the Farm Safety Net

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Crop insurance serves America’s farmers and ranchers through effective risk management tools that strengthen the economic stability of agricultural producers and their rural communities. This ensures Americans have access to a safe and secure food supply.

Because it protects all American farming operations—no matter the size—it’s an incredibly diverse and robust program. Don’t believe us? Just take a look at the numbers and see what farmers themselves have to say.

Crop insurance is as diverse as the crops it protects. Crop insurance covers 136 crops and 604 varieties with 36 different plans of insurance. Crop insurance is also available for livestock.

With the number of options, endorsements, and various elections available, that totals more than 170,000 different county/crop programs.

Crop insurance protects $194 billion worth of crops and livestock.

More than $22 billion worth of specialty crops are protected by crop insurance and farmers buy crop insurance on more than 70 different organic crops.

Crop insurance protects more than 90% of insurable acres of American major crop farmland. Farmers in all 50 states purchase crop insurance.

Farmers trust crop insurance. They buy more than 1.2 million crop insurance policies each year.

Farmers have paid more than $46 billion in crop insurance premiums in the last 10 years. They share in the risk.

“Crop insurance remains agriculture’s best risk management tool, it’s imperative that Congress continue to protect a strong, effective Federal crop insurance program.”

– Travis Beuerlein, Texas Cattle Rancher

“If it wasn’t for Whole Farm Revenue Protection today, you know, I may not be at the size that I am.”

– Brian Campbell, Pennsylvania Diversified Produce Farmer

Not a Farmer? Crop Insurance Matters to You, Too!

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Crop insurance is the cornerstone of the farm safety net, protecting more than 490 million acres across all 50 states, as well as 136 crops and 604 varieties with 36 different plans of insurance. It has earned the trust of America’s farmers by providing personalized risk management plans that quickly deliver aid in the case of a verified loss. But crop insurance is about more than just crops — learn more.

Not only do American farmers and voters trust crop insurance, Congress has repeatedly strengthened the program to give farmers more certainty, support the rural economy, and protect our national food supply. Most recently, Congress enacted changes to crop insurance in the last Farm Bill in 2018.

Not a farmer? Here are some of the ways improvements to crop insurance affect you, too:

Strengthens Voluntary Conservation Efforts
America’s farmers and ranchers are stewards of the land and our national resources. Crop insurance requires that farmers follow Good Farming Practices (GFP) appropriate for their crop and region to maintain crop insurance coverage. The 2018 Farm Bill recognized cover crops as GFP, reinforcing the coexistence of crop insurance and soil health measures. GFPs are one way crop insurance works hand-in-hand with farmers on conservation, creating a more resilient and more sustainable future for us all.

Improves Coverage for Specialty Crops and Non-Traditional Crops
Farming doesn’t just revolve around sprawling fields of corn in the Midwest. America’s farmers grow many different types of fruits and vegetables to feed millions around the world, requiring a crop insurance program that is as diverse as the crops it protects. Because of this, Congress recognized the need to increase support for specialty crop producers and added improvements to citrus fruit and tree policies and improvements to the Whole Farm Revenue Protection (WFRP) policy to the 2018 Farm Bill. A new Production Revenue History plan of insurance was also added for strawberries and fresh market tomatoes, with other specialty crops also being researched and developed.

Expands Benefits for Beginning and Veteran Farmers and Ranchers
No matter how long they have been farming, American farmers of all ages are crucial to the safety and stability of our food supply. To help beginning farmers and ranchers better navigate the risks of farming,  policy premium discounts were expanded in the 2018 Farm Bill to those with ten years or less farming experience. Congress also reduced regulatory burdens and expanded the benefits available to veterans who are entering agriculture. Access to affordable and dependable crop insurance will help pave the way for future generations of American farmers.

The bipartisan support for crop insurance in the 2018 Farm Bill produced a better crop insurance program. Congress helped create more adaptable risk management tools, supporting farmers and our food supply. We look forward to seeing how Congress can utilize the next Farm Bill to expand crop insurance to more farms, more crops, and more acres.

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 Testify: Crop Insurance Works

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President Dwight D. Eisenhower once famously said, “farming looks mighty easy when your plow is a pencil, and you’re a thousand miles from the corn field.”

That’s why farmers, crop insurers, and other agriculture stakeholders from across the country recently brought the corn fields to Congress. Farm leaders representing a diverse range of crops traveled to Washington, DC, and stressed to the House and Senate Agriculture Committees the critical importance of a strong crop insurance program in the next Farm Bill.

Crop insurance is the cornerstone of the farm safety net, protecting more than 490 million acres of farmland and $170 billion of agriculture production. Farmers testified that, due to the immense risks that come with agriculture, their family farms depend on the protection offered by crop insurance.

“If it wasn’t for Federal crop insurance, I wouldn’t be the sixth generation to farm my family’s farm in Sumner County, and there’s probably no chance of the seventh generation… being able to take over.” – Craig Meeker, Chairman, National Sorghum Producers

Crop insurance is built on a unique public-private partnership between the U.S. Department of Agriculture (USDA) and the private sector. Farmers must share in the risk by purchasing crop insurance, spending more than $6.8 billion to purchase crop insurance in 2022. Farmers continue to invest in crop insurance, and Americans support the program, because it works.

“Federal crop insurance has a proven track record for helping producers quickly respond to natural disaster. Corn growers consistently rank crop insurance as the most important program and title of the Farm Bill,” Tom Haag, president of the Corn Board of the National Corn Growers Association, told the House Agriculture Committee.

At the House hearing, farmers also spoke to their personal experiences with crop insurance. Aaron Flansburg, Chairman, USA Dry Pea and Lentil Council, noted that crop insurance helps farmers secure credit, and it contributes to the financial stability of his own farm. Andrew Moore, President, U.S. Canola Association, recently relied on crop insurance when a cold snap killed his canola crop.

The stories continued on the Senate side: Last year, Kody Carson, Past Chairman of the National Sorghum Producers, planted hundreds of acres of sorghum. He harvested just one field. “Crop insurance is vital for sorghum producers and the tool has been critical in helping us manage the ongoing drought conditions,” Carson said.

“Wheat farmers rely on the certainty of the crop insurance program. In turn, the American people can depend on American farmers who are able to…withstand natural disasters.” – Brent Cheyne, President, National Association of Wheat Growers

 

Testimony and congressional questioning across both committees touched on several of crop insurance’s key strengths:

  1. It’s available to farmers in all 50 states and to more than 130 crops
  2. It delivers aid quickly, allowing farmers to plant again the next season
  3. It’s adaptable, with new products continually under development
  4. It helps farmers, especially new and beginning farmers, secure credit
  5. It contributes to the health and stability of rural communities

In addition to listening to farmer perspectives, the Senate Agriculture Committee also heard from two of the 13 companies approved to sell and service crop insurance.

From America’s corn fields to Capitol Hill, farmers are speaking out loud and clear: Crop insurance keeps America growing. The next Farm Bill must preserve and strengthen this vital risk management tool.

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 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.

“The Most Successful Thing We’ve Done in Agriculture”

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Former Minnesota congressman Collin Peterson knows farm policy. As Chairman of the House Agriculture Committee, Peterson played a key role in several Farm Bills. Peterson recently spoke at an Agri-Pulse event about the critical role crop insurance plays in the farm safety net.

“The most successful thing we’ve done in agriculture, and clearly during my career was crop insurance,” Peterson said.

As farm disasters have threatened farms in recent years, Peterson also urged Congress to utilize the next Farm Bill to improve crop insurance and expand coverage where needed, rather than create a separate new permanent disaster program. Peterson warned that a permanent disaster program would “undermine crop insurance.”

Policy experts and politicians aren’t the only ones speaking out in support of crop insurance. We’ve spent the year talking to farmers on the ground about how crop insurance helps them manage their risks and gives them the tools to improve resiliency.

  • “[Crop insurance has] 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 the weather goes against you.” – Gayle Smith, North Carolina rancher
  • “We use crop insurance for the fact that if something bad happens, we don’t want to lose our livelihood.” – Jim Carroll, fourth-generation Arkansas farmer
  • “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 everything.” – Michael Moore, third-generation North Carolina farmer
  • “Crop insurance basically ensures that the growers are going to be farming next year.” – Landrum Weathers, fifth-generation South Carolina farmer and crop insurance agent
  • “Without crop insurance… this farm would not still be here. It would be gone.” – Brian McClam, seventh-generation South Carolina farmer
  • “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.” – Scott Flowers, Mississippi farmer

These testimonials represent the immense trust that farmers place in crop insurance. Crop insurance is the cornerstone of the farm safety net, insuring 445 million acres in 2021.

It is critical that crop insurance remain affordable, effective, viable, and adaptable. This ensures that farmers have a risk management plan to prepare for the unexpected and the confidence to plant again after disaster.

“It’s going to give us more backstop against the ups and downs of agriculture,” Peterson said. “And that’s always going to be there. You know, it’s just a dangerous business.”

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.

Risk Management Discussion Shines Spotlight on Crop Insurance

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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 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.

Crop Insurance Basics: Historic Drought Loss

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 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.