Crop Insurance Basics: Moral Hazard

Moral hazard is a phrase commonly used in the business community that simply means people act or perform differently when they are fully insulated from risk. An entry on the topic on Investopedia.com explained it like this: We encounter moral hazard every day – tenured professors becoming indifferent lecturers, people with theft insurance being less

USDA Chief Actuary Highlights Crop Insurance Strengths

America’s farmers and ranchers face an incredible number of risks every year, ranging from catastrophic weather events to market disruptions. That’s why rural America relies on the risk management tools provided by the Federal crop insurance program. Dr. Thomas Worth, Chief Actuary at the U.S. Department of Agriculture’s (USDA) Risk Management Agency, recently spoke at

Celebrating the Incredible Women of Crop Insurance

Last week, as we celebrated Women in History Month, the U.S. Department of Agriculture (USDA) hosted a special conversation to honor the women who work in the crop insurance industry. Kendall Jones, chair of the National Crop Insurance Services (NCIS) and president and CEO of ProAg, and crop insurance agents and industry leaders Iris Sáenz

Crop Insurance Industry Raises Funds for Farm Rescue

During the 2021 Crop Insurance Industry Annual Convention attendees were given the opportunity to donate to Farm Rescue, an organization that helps farms in crisis. Because of the generous support of the registrants, and NCIS member companies, $14,000 was raised for this important charity. Farm Rescue’s mission is to help family farms and ranches bridge crises,

Crop Insurance Basics: Incentives

When policymakers prioritize specific behaviors or actions, they usually turn to incentives to jumpstart the process. For example, the U.S. government has long promoted the benefits of homeownership to individual families and the economy as a whole. Hence, lawmakers introduced mortgage interest deductions on income tax filings to make homeownership more affordable and attractive. In

Crop Insurance Basics: Actual Production History

One of crop insurance’s defining attributes is its self-correcting nature. That is, farmers who exhibit more risk pay more than those who exhibit less – much in the same way that car insurers reward safe drivers. This is done by collecting and analyzing a producer’s Actual Production History (APH), which takes into account a grower’s

Crop Insurance Basics: Available to All

In the everyday insurance world, coverage may sometimes be hard to come by. That can be true if you’ve had a disaster – such as a fire in your home – or live in an area at high risk for disaster. Car insurance coverage may be more expensive or even denied if you are a

Agricultural Coalition Sends Letters Urging Federal Leaders to Protect Crop Insurance

With a new Administration taking control in Washington, D.C., and many new members joining Congress, it’s more important than ever to remind elected leaders the crucial role crop insurance plays in protecting farmers, ranchers, and rural communities. That’s why a group of 58 farming, banking, and conservation organizations sent letters last week to House and

Crop Insurance Basics: Good Farming Practices

Suppose you’re a homeowner who intentionally neglects your property, refusing to make basic repairs and even creating unsafe conditions like exposed wires or leaky pipes. Now suppose your house, not surprisingly, is damaged from a resulting fire or flood. Are you entitled to a full homeowner’s insurance payout? Of course not. A homeowner’s policy has

Crop Insurance Basics: Cost Sharing

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

Crop Insurance Basics: Actuarially Sound

Unless you’re an economist, an insurance guru, or a pension fund manager, chances are good you’re not overly familiar with the term actuarial soundness. In short, it’s a fancy way of saying “the math must work.” For example, an actuarially sound pension fund will have enough money in the bank to meet future obligations. If

Michael Connealy Receives Crop Insurance Lifetime Achievement Award

Michael Connealy, Hudson Crop Insurance, was the recipient of the 2021 Crop Insurance Industry Lifetime Achievement Award in recognition for his many years of leadership and contributions to the crop insurance industry. The award was presented during the 2021 Crop Insurance Industry Annual Convention, which was held virtually on February 9. Connealy grew up on

David Hood Receives Crop Insurance Outstanding Service Award

David Hood was the recipient of the 2021 Crop Insurance Industry Outstanding Service Award in recognition for outstanding service and outreach to small, limited resource, and socially disadvantaged farmers.  The award was presented during the 2021 Crop Insurance Industry Annual Convention, which was held virtually on February 9. Hood has a distinguished 41-year career with

Kelly Garrett Receives Crop Insurance Industry Leadership Award

Kelly Garrett, Great American Insurance Group, was the recipient of the 2021 Crop Insurance Industry Leadership Award in recognition for consistently serving the industry and providing outstanding leadership through NCIS’ regional/state committees. The award was presented during the 2021 Crop Insurance Industry Annual Convention, which was held virtually on February 9. Garrett has more than 27 years of

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

U.S. crop insurance policies protected the country’s farmers and ranchers and ensured rural communities stayed strong in the face of the COVID-19 pandemic, tornadoes, hurricanes, and political unrest. In all, those policies protected 398 million acres of land in 2020. In her opening remarks at the crop insurance industry’s annual meeting, Kendall Jones, chair of

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

Crop insurance is not acting as a barrier to the adoption of conservation practices and has a role in helping farmers maintain healthy soil. That’s according to a new peer-reviewed study in the renowned Journal of Environmental Management. During the study, researchers from Purdue University, Arizona State University, and the Nature Conservancy used interviews and

NCIS Scholarship Program Helps Students, Promotes Diversity in Agriculture

Jaevien Akinmola grew up helping his grandfather raise vegetables and fruit in rural South Carolina. Farming was everywhere in his hometown of Manning. He could walk out his front door and into a farm field just down the road. Today, Akinmola is studying Agribusiness at South Carolina State University. He has big plans to be

Idaho Farmer: Crop Insurance Helps Farmers Feed America

Located in the southeastern corner of Idaho and situated in a high desert environment more than 5,000 feet above sea level, the town of Rockland can be a difficult location to farm. Extreme weather has the potential to quickly devastate crops. Fifth generation Idaho farmer Jamie Kress understands these challenges and that’s why Jamie and

Stronger Together: Farmers Count on Crop Insurance During Difficult Year

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

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

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

Just along the Texas-New Mexico border lies the small town of Texline. This west Texas community is where Valerie and Michael Diller raised their family while growing corn, wheat, hay and caring for sheep. Farming isn’t easy, and the Diller family has experienced their fair share of heartbreak. They credit crop insurance with helping their

North Carolina Apple Grower Says Crop Insurance Key to Food Security

Kenny Barnwell is a fifth-generation apple grower in the mountains of North Carolina. His family farm covers approximately 150 acres and is home to 26 different varieties of apples. This year has been tough for apple growers in North Carolina, much like farmers across the country. Apple growers have faced weather-related damages to their crop

Texas Family Says Crop Insurance Saved Their Farm

Valerie Diller met her husband Michael while they were students at West Texas State University. They decided to return to his hometown of Texline, start a farm and raise a family. About two years after they started farming, a terrible hailstorm destroyed all of their wheat and badly damaged the corn crop. Fortunately, they had

Thank a Farmer This Labor Day

Labor Day is a day to celebrate the achievements of the millions of men and women who keep America running. This year, don’t forget to thank a farmer. Approximately 2.6 million Americans work directly on a farm. Nearly 20 million more work in food and other agricultural-related industries. Farming and ranching are certainly not your

Texas Farmer Hopes for Rain, Counts on Crop Insurance

Rain in West Texas can be scarce. So scarce, in fact, that farmer Brett Schniers wrote in a recent op-ed for the San Angelo Standard-Times that “when you lay down at night, you pray for rain because you don’t know when you’ll see it again.” Despite the incredible promise of 2020, it has been a

Wheat Growers Count on Crop Insurance

This year, America’s farmers and ranchers have faced one challenge after another. For wheat farmers in the west and Midwest, their crop is now threatened by severe drought conditions that could contribute to yield reductions or total crop loss. Thankfully, more than 90 percent of insurable planted acres are protected by crop insurance, including many

Maryland Farmer Thankful for Crop Insurance During Uncertain Year

In farming, the future is never certain. It requires trust that a planted seed will sprout and then flourish and hope that weather or market conditions will not upend that year’s crop. One thing America’s farmers and ranchers did not predict this year: a global health care crisis. Brooks Clayville grows row crops on his

Crop Insurance Protects Essential Food and Fiber Supply

Steve Ward talks to as many lawmakers as he can about farming. Specifically, growing cranberries. Ward grew up helping his dad on the family farm in Massachusetts, building cranberry bogs and digging ditches. Now, he farms that land with his son. But growing cranberries is extremely labor intensive and carries a large amount of risk,

Crop Insurance an Essential Part of Farmers’ Hurricane Preparedness Kits

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

America’s Farmers Remain Open to Feed America

Chip and Karla Bailey own KC Bailey Orchards in Williamson, New York, where they grow apples. They’re proud to help provide for their neighbors as well as customers across America, especially during the COVID-19 pandemic. The past few months have resulted in some dramatic changes in our daily lives, but for America’s farmers, like the

NY Apple Farmer: Hope Has Not Been Cancelled

A family apple farm in New York is reminding America that farmers are still out there growing essential food, fiber and fuel. Chip and Carla Bailey produced a video at their KC Bailey Orchard in Williamson, NY, with a simple message: Hope has not been cancelled. “Because of COVID-19 a lot of things have been

Crop Insurance Backs Farmers During Unprecedented Uncertainty

Crop insurance has been there for rural America through the many uncertainties that farmers and ranchers face every single day. It’s helped agricultural producers survive droughts, tornados, blizzards, floods, low prices, prevented plantings and even volcanos. Still, over the past few months, the COVID-19 pandemic has introduced new and unprecedented challenges as farmers navigate supply

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

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

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

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

Crop Insurers: Proposed OMB Budget Undermines Farm Safety Net

The Office of Management and Budget (OMB) today released a proposed Fiscal Year 2021 budget that includes steep cuts to the Department of Agriculture and federal crop insurance. The American Association of Crop Insurers, Crop Insurance and Reinsurance Bureau, Crop Insurance Professionals Association, Independent Insurance Agents and Brokers of America, National Association of Professional Insurance Agents, and

Investing in the Future of Agriculture

National Crop Insurance Services is proud to invest in the future of agriculture through the NCIS 1890 Scholarship Program. NCIS awards scholarships to students majoring in agriculture-related disciplines at historically-black 1890 Land Grant Universities. Scholarship recipients are driven students with strong academic records. Their accomplishments are not constrained to the classroom and students have a

New York Dairy Farmer Thanks Crop Insurance

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

Giving Thanks for Our Farmers

This Thursday as you gather around the Thanksgiving table with your family and friends, we hope you pause for a moment to give thanks for America’s farmers and ranchers. Our farmers work long hours all year long to make the Thanksgiving bounty we enjoy possible. And farmers are thankful for the Federal crop insurance program.

Crop insurance a farm business must

My family knows a little about how much farmers are at the mercy of Mother Nature. During the Dust Bowl, my grandparents Edson and Harriet Durfee fled the disaster in Nebraska and came back east to Chittenango to start again. Back then, there was no farm safety net. When the Nebraska prairie turned against them,

Crop Insurance Receives Bipartisan Praise

Autumn is here and most of America’s farmers are in the full swing of harvest. As farmers are working long hours in the field, legislators on Capitol Hill are tackling a different kind of challenge: implementation of the 2018 Farm Bill. The 2018 Farm Bill was passed last December and included key provisions to strengthen

New York Farmers Rely on Crop Insurance to Manage Risk

Apple farmer and agri-tourism business owner Matthew Critz got up on New Year’s morning last year to a beautiful winter day in central New York. Not a cloud in the sky. Wall-to-wall sunshine. “I look outside at the thermometer and it says 30 below,” he recalled. “And it’s even colder in my orchard. We lost

Crop Insurance Helps Pennsylvania Farmer Manage Risk

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

House Crop Insurance Caucus Shares Importance of Farm Safety Net

Congressional staff filled a hearing room on Capitol Hill last week for the official launch of the bipartisan House Crop Insurance Caucus, hosted by co-chairs Cheri Bustos (D-Ill.) and Glenn “GT” Thompson (R-Pa.). The House Crop Insurance Caucus will work to share with lawmakers the benefits of crop insurance and demonstrate how this program helps

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