President’s Budget Reaffirms Crop Insurance is Critical to Farm Safety Net
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:
- Delivering aid quickly and efficiently through private-sector crop insurers, giving farmers the confidence and the capital necessary to navigate disaster.
- 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.
- 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.”