New York Farmers Rely on Crop Insurance to Manage Risk

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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 70 percent of our crop in about three hours that morning.”

Without apples, his business would die. Critz Farms, in Cazenovia, is an easy drive from Syracuse and attracts about 70,000 visitors a year. He sells apples, blueberries, maple syrup and Christmas trees along with brewing beer and hard cider.

“If we don’t have apples, people don’t come,” he says.

Crop insurance saved Critz last year and allowed him to purchase enough apples to make up for the shortfall caused by Mother Nature.

“It did provide quite a good cushion for us,” he says.

National Crop Insurance Services visited farms across central New York as part of our mission to tell the first-hand stories of the farmers and ranchers who rely on the safety net provided by the federal crop insurance program.

Dairy farmer Steve Durfee in Chittenango says the large investment required for each acre he plants makes crop insurance a must. He has about 1,000 milk cows, grows corn and wheat and runs a small vegetable stand mostly for the surrounding neighborhood.

“Buying insurance helps take out some of the risk,” he says. “Last year just looking at what the price of milk was and saying if it continues at this level, it would certainly put a lot of stress on our finances.”

He bought a dairy revenue protection policy to help mitigate the risk of the volatile dairy market. Fortunately, the price of milk rebounded, and he didn’t need to use the insurance.

Like all farmers, Durfee would rather sell his products at a good price than make an insurance claim.

“Crop insurance is just like all the other insurance you have,” he says. “We end up spending a lot of money on insurance, but you can sleep at night knowing if something happens, you are going to be protected partially and you will be able to rebound from it and continue on.”

Down the road in Wolcott, that peace-of-mind is something Alicia Abendroth understands. She runs Abendroth’s Apple Ridge Orchard with her brother and father. They’ve been in business about 6 years.

“For my brother and I, this is a huge deal and we want to grow this,” she says.

As a young farmer, and a young family business, protecting the investment they make in each apple tree is critical to make sure the business grows.

Hail in August this year damaged a crop of early apples right before harvest.

“When something like that happens, there is nothing you can do,” she says. “You just kind of watch it fall. We utilize crop insurance when incidents like that happen that are completely beyond our control. And we are thankful we have it because it’s saved our lives. Crop insurance has helped my dad sleep better at night.”

Central New York is a wonderful place to farm with generally good growing conditions and easy access to large populations of consumers. But here, like the rest of America’s farm country, Mother Nature can be unforgiving.

Back in Cazenovia, that’s something Matthew Critz says he never forgets.

“Your worst risk is weather,” he says. “And if you can cushion that risk with crop insurance, you gotta do it because farming is such a risky business.”

View more stories from across the country at cropinsuranceinamerica.org.

Crop Insurance Helps Pennsylvania Farmer Manage Risk

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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 600 cattle and growing about 400 acres of corn alongside 600 acres of grass and rangeland.

Ligo recently published an op-ed in the Pennsylvania publication Lancaster Farming praising the Federal crop insurance program, an excerpt of which is below:

I’m a farmer because it gives me a chance to shape the land. I can shape my business and my reputation and build my ethic to that picture in my mind of how things should be.

 I don’t know what else I could do besides farming to create that. It’s not always easy, and it’s full of risks, but I love it.

 The risk in farming is part of the landscape. It comes with the job.

 Some risks are controllable, and some are not. We always have risks of health, for the farmer and the livestock. We have risks in weather, which can somewhat be mitigated by our practices, and sometimes not.

 One of those things we can do to manage crop production risks is crop insurance. Crop insurance allows me to expect at least a bottom-line income.

 Last year we had 40 inches of rain here. By June 10, I was short a hundred acres of what I intended to plant. Crop insurance helped me with that.

 There have been years when the sunshine just didn’t bring it to us, and crop yields were low. Crop insurance helped me then, too.

 There are years, occasionally, when we have a drought and grass production is just not what it should be, and feed is hard to buy. A pasture rangeland forage policy through crop insurance helped me during the droughts and I was able to continue doing what I am doing.

 I know my risks are at least covered to a certain extent with crop insurance.

Ligo concluded his op-ed by thanking Congress for expanding crop insurance in the 2018 Farm Bill and calling on lawmakers to ensure crop insurance remains affordable and widely available in future policy debates. Because without crop insurance, farmers like John Ligo would be unable to provide America with the safe, affordable and high-quality products that feed our nation.

House Crop Insurance Caucus Shares Importance of Farm Safety Net

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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 our farmers endure hardship by mitigating their risks.

Bustos has seen first-hand how crop insurance can be a lifeline for farmers devastated by unexpected weather events. Her Illinois district was hit hard by the extreme weather that inundated the Midwest this spring. “Our growers and producers are hurting,” she said. “Our family farmers are hurting.”

“This bipartisan Crop Insurance Caucus will work arm-in-arm to educate other members about the importance of a strong farm safety net and agricultural economy,” Bustos said.

Thompson made it clear what’s at stake when it comes to protecting the Federal crop insurance program. “Having crop insurance is incredibly important,” Thompson said. “We know that agriculture is really about food security. And food security is really about national security.”

This briefing was just the first of many, as the caucus hopes to be an accessible resource for Congress and an avenue to encourage bipartisan collaboration to strengthen the Federal crop insurance program.

“This caucus aims to educate our colleagues and educate the general public on the importance and value of crop insurance.” Thompson explained. “It all starts today.”

Farmers and agriculture lenders also spoke alongside the members of Congress, sharing their personal experiences with crop insurance.

Illinois farmer Ron Moore discussed how the impact of crop insurance extends beyond individual farmers to the local economies that rely on the income generated by agriculture. “Crop insurance is a valuable tool that we have as farmers. It’s imperative that we continue to preserve that tool because it not only helps me as a farmer, but it also helps my community,” Moore said.

Heather Greenwalt, Assistant Vice President at Farm Credit Illinois, remembered the 2012 drought and the role crop insurance played in preserving family farms across the Midwest. It was a beautiful spring and all of the local farmers were so proud of what they were able to accomplish in the field, she recalled. Until one day it just stopped raining. It was the worst drought since the Dust Bowl.

But the farm safety net worked as it was designed. Private crop insurance companies worked efficiently to deliver aid to farmers, saving tens of thousands of jobs along with taxpayer money.

“Crop insurance in 2012 was the difference in people staying in the agriculture industry in 2013,” Greenwalt said. “And crop insurance is again in 2019 going to be a major and crucial risk management tool for many farmers and producers.”

Risk is an intrinsic part of farming and producers are always calculating the variables that can impact crop production or their herd. But Greenwalt knows that when disaster strikes, the farmers she serves can find comfort in knowing that crop insurance gives them options for relief.

Greenwalt added, “As an agent and as a farmer, a strong crop insurance program means for a strong rural economy and a strong food supply for our nation.”

Learn more about how the Federal crop insurance program works by watching our brand new Crop Insurance 101 video or visiting CropInsurance101.org.

National Crop Insurance Services Launches New Website to Educate Public, Policymakers on Importance of Crop Insurance

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Our nation’s farmers and ranchers face unpredictable hazards, many of which can destroy a hard-earned livelihood in moments. Thankfully, farmers can count on crop insurance to help them navigate these risks and protect their operation should disaster strike.

However, the continued success of crop insurance depends on keeping the program affordable, widely available, and economically viable. And that starts with educating both the public and policymakers as to the important role crop insurance plays in the farm safety net.

National Crop Insurance Services (NCIS) has launched a new website at CropInsurance101.org that aims to be an easily-accessible resource where visitors can learn more about the history of crop insurance, download fact sheets, or find a glossary of common terms. As part of this initiative, NCIS also debuted a new Crop Insurance 101 video that explains how crop insurance works.

The Crop Insurance 101 website was officially launched at a congressional briefing today hosted by the new House Crop Insurance Caucus.

Created by Reps. Cheri Bustos (D-Ill.) and Glenn “GT” Thompson (R-Pa.), this bipartisan caucus will provide a forum for all members to learn more about the value of the public-private partnership that makes crop insurance unique while encouraging bipartisan collaboration to strengthen this program for rural America.

Members of the caucus include: Reps. Cindy Axne (D-Iowa), Mike Bost (R-Ill.), Salud Carbajal (D-Calif.), TJ Cox (D-Calif.), Angie Craig (D-Minn.), Rodney Davis (R-Ill.), Alcee Hastings (D-Fla.), Dave Loebsack (D-Iowa), and Jefferson Van Drew (D-N.J.).

Illinois farmer Ron Moore provided congressional staff at the briefing with a first-hand perspective of the importance of crop insurance.

“The crop insurance program is a critical tool to protect against the risks that come with farming,” Moore said. “As the rural economy faces another tough year, it is encouraging to see members of Congress from both sides of the aisle come together to stand up for America’s farmers.”

And with crop insurance policies protecting nine out of every 10 planted acres of principle crops, crop insurance does more than provide economic security – it safeguards our nation’s food and fiber supply.

Learn more about how crop insurance works for both farmers and taxpayers alike by visiting CropInsurance101.org.

How Does Crop Insurance Impact Your State?

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Crop insurance is a cornerstone of U.S. farm policy.

But what does that really mean for America’s farmers?

To put it all into perspective, National Crop Insurance Services has highlighted the state-by-state impacts of crop insurance at CropInsuranceInMyState.org.

There you can find individual fact sheets that illustrate the unique significance of agriculture in each state.

It’s probably to be expected that oranges are a staple in Florida, but did you know that New Jersey can thank tomatoes for being the largest agricultural contributor to the Garden State’s economy? Idaho might be famous for their potatoes, but potatoes lead the list of top crops for Maine as well.

And the federal crop insurance program helps these crops drive the economy by providing an invaluable safety net for those farmers and ranchers harvesting oranges, tomatoes, potatoes and the more than 100 additional covered crops.

Everything is bigger in Texas, and with 38 million acres protected by crop insurance, they come in at number one in acres covered. But corn-production powerhouse Iowa can boast the highest value of crops covered by federal crop insurance, with nearly $12 billion in protection.

And because crop insurance requires farmers, private insurance companies, and the federal government to share the burden of risk, each fact sheet outlines how much farmers and insurers invested into the federal crop insurance program through premiums and indemnities.

In total, federal crop insurance protects more than $100 billion worth of crops across more than 300 million acres in all 50 states.

Head back to the homepage to download a fact sheet for your state and view first-hand testimonials from the farmers and ranchers who rely on this valuable risk management tool.

Pennsylvania Farmers Consider Crop Insurance a Must-Have Tool

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Brian Campbell always knew he wanted to be a farmer. He started a produce stand when he was just 14 years old. Now, his Pennsylvania farm produces mostly vegetables, including broccoli, sweet corn, lettuce and pumpkins.

But weather can be unpredictable in the Northeast, and his farm has seen challenges. In 2011, a severe flood wiped out approximately 50 percent of his expected revenue for that year. Banks no longer wanted to do business with him and he had to dig deep to recover.

Thankfully, the introduction of the Whole Farm Revenue Protection program with the passage of the 2014 Farm Bill allowed Campbell to adequately insure his diverse crops against risk.

National Crop Insurance Services visited Brian Campbell Farms as part of our mission to tell the first-hand stories of the farmers and ranchers who rely on the safety net provided by the federal crop insurance program.

Campbell credits crop insurance for his growing success, saying, “If it wasn’t for whole farm revenue protection today, you know, I may not be at the size that I am.”

And he’s always looking forward to the next year, “I love what I do. It’s a passion. I really enjoy it.”

For family farmer Dave Clark, farming is also a passion that he just couldn’t shake. He briefly tried working off the farm but returned to his roots in 2001 when he and his wife purchased the family farm in Huntingdon County, Pennsylvania.

“I always say it’s in your blood. I love farming,” Clark says.

Clark considers crop insurance a must-have business tool. He relies on crop insurance to help protect his farm against the inherent risks that come with putting your faith in weather to grow your crops and a favorable market in which to sell them.

As John Ligo says, “Risk in farming is part of the landscape. The risks that we face, some are controllable, and some are not.” But he emphasizes that one way to help mitigate these risks is to purchase crop insurance.

His farm in Grove City, Pennsylvania is home to approximately 600 head of cattle and he grows about 400 acres of corn alongside 600 acres of grass and rangeland.

Last year, Ligo’s farm saw 40 inches of rain and by early June he was short 100 acres of what he intended to plant. Crop insurance helped his farm survive. During those years when drought hindered grass production, crop insurance helped him then, too.

“It does change the way I farm, knowing that my risks are at least covered to a certain extent,” Ligo says.

Third-generation dairy farmer Billy Smith feels deeply connected to his family legacy of farming.

“I feel that it’s our God-given right here to take care of this land,” he says. “I feel that we’ve been blessed in many ways. You know, it’s our livelihood.”

He’s had to file a couple of crop insurance claims. But knowing that this valuable federal program exists helps ease the worries that come with farming. By reducing some of the risks that can arise on his farm, crop insurance allows him to better plan for the future.

“It’s always there to back us up whenever we need it.”

Congressional Testimony Touts Benefits of Crop Insurance

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Farmers across the country know first-hand the critical role the federal crop insurance program plays in protecting our nation’s supply of food and fiber. It’s an important risk management tool that supports both America’s farming communities and the rural economies that rely on them.

Michael Davenport, COO of Rain and Hail and Chairman of the American Association of Crop Insurers, brought this positive message to Capitol Hill today when he testified before the House Agriculture Committee’s Subcommittee on General Farm Commodities and Risk Management.

Davenport’s testimony highlighted the unique public-private partnership that allows crop insurance to be flexible, affordable, available, and predictable.

By offering a variety of insurance products, federal crop insurance provides growers with dependable coverage options that fit the requirements of their individual farm. And with new investments in technology and a continuous focus on high-quality customer service, private crop insurers can quickly process claims while keeping costs manageable.

The 2018 Farm Bill helped strengthen the federal crop insurance program, and Davenport thanked the committee for investing in the American farmer.

“With the continued bipartisan support for the public-private partnership crop insurance provides, farmers are able to receive a reliable and cost-efficient safety net to protect both themselves and the future of farming,” Davenport testified.

The overwhelming success of crop insurance has made it the cornerstone of the federal farm safety net. More than 1 million federal crop insurance policies provide more than $100 billion in coverage across 300 million acres of farmland in all 50 states.

“The bottom line is that the crop insurance program is successfully meeting the needs of thousands of farmers who can tailor their risk management needs to serve them best with the help of a local agent,” Davenport said.

And as farmers face significant challenges this year, Davenport emphasized to the committee that the private crop insurance industry is standing ready to provide timely assistance and “fulfill the promises of the Federal Crop Insurance Program to each and every farmer who purchased a policy.”

Farming can be unpredictable. But the federal crop insurance program provides a reliable safety net that benefits farmers and taxpayers alike.

Farm Bill Expands Crop Insurance for Young, Veteran Farmers

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The future of farming depends on the next generation taking up the plow, so to speak. But the barriers to entry can be prohibitive – and prohibitively expensive.

Costs for necessary items such as machinery, seeds, or land are high and add up quickly. Not to mention it can be difficult to obtain lines of credit in the first place without access to substantial capital or insurance giving banks the peace of mind that farmers will be able to repay loans.

And all of that sweat and equity could be wiped out in the time it takes a tornado to touch down or floodwaters to rise.

Thankfully, federal crop insurance provides a valuable safety net.

Farming can be an especially daunting task for those that are a part of traditionally underserved communities, such as beginning farmers or veterans.

Many of these farmers tend to lack the equity and liquid assets necessary to begin farming, and therefore rely on loans. And most lenders require crop insurance coverage to act as a backstop should disaster strike.

Congress recognized the importance of supporting these farmers and took steps to increase their access to crop insurance with the 2018 Farm Bill.

Legislators expanded premium discounts for Whole Farm Revenue Protection (WFRP) policies to those with ten years or less farming experience. Twenty-seven percent of American farmers fell into this category during the 2017 Census of Agriculture.

In addition, the Farm Bill reduced regulatory burdens for those with WFRP policies by allowing waivers for expanding operations, especially for small and beginning farmers, reducing record keeping requirements for small farmers and minimizing paperwork.

USDA data indicates that the rural population of post-9/11 veterans is growing quickly and provisions in the 2018 Farm Bill seek to increase access for those veterans who wish to enter farming. Congress included veteran farmers and ranchers as part of a new definition of underserved producers, allowing them to take advantage of improved crop insurance benefits such as additional premium discounts.

And the Farm Bill mandated that the Risk Management Agency produce an Underserved Producer Report every three years in order to continue identifying ways the federal government can reform and improve these programs in order to increase participation and better serve these communities.

In total, these reforms will help give new and veteran farmers the tools they need to effectively manage their risks.

National Crop Insurance Services recently spoke with young Iowa farmer Colin Johnson who emphasized the important role crop insurance plays in ensuring he can continue farming, saying that he “probably wouldn’t have lasted two years without… crop insurance support.”

Farming can be difficult. But access to affordable and dependable crop insurance will help pave the way for future generations of American farmers.

Crop Insurance Supports Penn. Farmers in Lean Times

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Scott Bowser runs a dairy farm about an hour and a half north of Pittsburgh in western Pennsylvania’s famous farm country.

His dad bought the farm when he was 6 and started with a herd of 14 cows. It’s grown since then and today, Bowser farms with his wife and youngest daughter, Abby. His oldest daughter would like to come back to the family farm.

Like all dairy farmers in Pennsylvania, and across the nation, he’s felt the impact of tariffs in the international market and low commodity prices.

“You take the good with the bad,” he says. “And everybody knows, the last few years have not been so good.”

But Bowser loves it. And he wants to pass the farm down to his children.

“If you want something for your kids to take over … if that’s something that they really want to do, there has to be something there,” he says.

National Crop Insurance Services recently visited farmers across Pennsylvania to find out how they are managing to keep something here for themselves and the next generation.

Times are tough in the Commonwealth.

The state, second in the nation in dairy, lost 370 farms last year, according to USDA.

Farmers all across Pennsylvania say crop insurance – whether whole farm revenue protection or policies that cover pasture, rangeland and forage – plays a critical role in keeping family operations going.

Down the road from Bowser’s place, Jared Smith is the eight-generation farming his family’s land. He wants to pass it to his children.

“The margins in agriculture are so slim right now that I feel crop insurance gives you a level of security that you are going to have some income off the investment you are making into your crops,” he says.

It helped keep him in business last year when late season rains forced him to leave hay, meant for his cows, standing in the fields.

Bowser agrees. He went 10 years without making a claim until wet years hurt his corn and bean crops.

“Crop insurance is one of those things that when you need it, you need it real bad,” he says. “And you get that check and you’re really glad to see that check coming. You might not be in business if you didn’t have it. The risks are too great.”

Celebrating Our Farmers Today and Everyday

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Many Americans may never step foot on a farm. But America’s farmers and ranchers are an integral part of our everyday lives, working to feed and clothe the nation. In fact, each American farmer feeds more than 165 people.

Today is National Agriculture Day, a day to celebrate the American farmer and recognize the incredible contributions that our food and fiber producers make every single day.

Agriculture Secretary Sonny Perdue has instituted an informal motto at the USDA: “Do Right and Feed Everyone.” The crop insurance industry is proud to support the farmers who devote themselves to this important mission.

America’s farmers are the most efficient in the world, but they can’t always predict what the future holds. Crop insurance helps protect our farmers and ranchers, ensuring that they can keep producing a safe and affordable supply of food for those here at home and abroad.

The federal crop insurance program protected a record 334 million acres in 2018. That’s more than 90% of America’s farmland. With insurance available for more than 130 different crops and affordable policies for operations both large and small, crop insurance provides an important safety net for farms across the country.

Jim Korin, chairman of National Crop Insurance Services (NCIS) and president of NAU Country Insurance Company, recently said it best: “We must remember our purpose: To provide exceptional coverage and service to farmers and ranchers to help them do what they do best…feed and clothe the world.”

Thank you to all of America’s farmers and ranchers. Today, and every day.

© NATIONAL CROP INSURANCE SERVICES. ALL RIGHTS RESERVED.