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 the crop insurance industry’s annual meeting, Jim Korin, chairman of National Crop Insurance Services (NCIS) and president of NAU Country Insurance Company, credited crop insurance’s integral role in the farm safety net for its increasing popularity.
“Despite the financial challenges that rural America has faced over the past several years, farmers continue to invest in the reliable crop insurance products we provide,” Korin said. “This is a testament to our industry’s record of service as well as the trust farmers place in us to provide assistance with efficiency and integrity when disaster strikes.”
In 2019, farmers purchased 1.1 million crop insurance policies, collectively paying $3.75 billion in premiums and shouldering more than $10 billion in deductibles.
As disasters threatened both planting and harvest across the heartland, the crop insurance industry acted quickly to deliver aid. As of Feb. 10, 2020, the crop insurance industry has already paid more than $9.15 billion in crop insurance indemnities to help farmers cope with their losses, and this number is expected to grow as claims are finalized.
“The fact is, corn fields and cow herds can’t survive on political promises,” Korin said. “Farmers can’t wait for politicians to fight over the details of what they deserve when their farm and their livelihood is on the line.”
Mike Davenport, chairman of the American Association of Crop Insurers and Chief Operating Officer of Rain and Hail LLC, a Chubb Company, also addressed the convention and asserted that crop insurance delivered as promised to farmers.
“We have indeed helped farmers and ranchers manage a challenging year by processing claims and getting payments out the door quickly. It underscores why private-sector delivery is such an integral part of the program and it demonstrates that crop insurance works,” Davenport said.
Both Korin and Davenport praised the wide availability of crop insurance, noting that the program protects the vast diversity of food, fuel and fiber production across the United States.
Korin concluded his remarks by pledging that the industry will continue its efforts to strengthen crop insurance, saying: “We will always work to ensure crop insurance remains affordable, widely available and economically viable.”