Federal crop insurance and the critical role it serves as part of the farm safety net unexpectedly took center stage at a recent Senate Finance hearing with the United States Trade Representative, Robert Lighthizer.

Michigan Senator Debbie Stabenow questioned USTR Lighthizer on the Office of Management and Budget’s (OMB) proposed spending plan for Fiscal Year 2020, which takes aim at the United States Department of Agriculture. OMB suggested making cuts to a popular farm risk management tool: crop insurance.

While this budget is unlikely to ever be adopted by Congress, Senator Stabenow, who is the top Democrat on the Agriculture Committee, rightly noted that cuts to the USDA and crop insurance would be contrary to the policy objectives established by the overwhelmingly bipartisan passage of the Farm Bill in December 2018.

Finance Committee Chairman Chuck Grassley (R-IA) immediately interjected, emphasizing that cutting crop insurance is a non-starter.

“It would gut the program,” the Chairman said of OMB’s proposal, “and that’s the one thing that our farmers and ranchers and growers all over the country said was the number one issue.”

He wasn’t alone in criticizing the plan.  Senate Minority Whip Dick Durbin (D-Ill.) made his objections heard a couple of days earlier.

“More than 310 million farm acres protected by crop insurance would be at risk,” he said of the plan, which he noted, “undermines our farmers.”

And those farmers have been very clear in their message to Capitol Hill to “do no harm” to crop insurance. Some of these farmers reiterated this ask at this week’s Agri-Pulse summit in Washington, D.C.

Luke Howard, an organic farmer from Millington, Maryland, shared how crop insurance helped his farm after a record rainfall last year, stating it was a lifesaver and “a smart use of tax dollars.”

And a first-generation farmer, John Shepherd from Blackstone, Virginia, emphasized that he may not have survived his first few years of farming without the safety net provided by crop insurance.

Their stories and similar testaments from farmers and ranchers are clear.

We simply cannot balance the federal budget on the backs of America’s farmers and ranchers. And agriculture cannot thrive without a strong crop insurance system.

Just before the end of 2018, the Economic Research Service at the United States Department of Agriculture released a report analyzing data from a 2017 survey of farmers across the country. This report – titled “America’s Diverse Family Farms” – presents the facts behind farming in America.

According to the USDA:

• Ninety-eight percent of U.S. farms are family farms, and they account for 87 percent of farm production.
• Family farms categorized as midsize or large produced 62 percent of America’s food and fiber and accounted for 6 out of 10 harvested acres in 2017.
• One-third of U.S. farm goods are produced under forward contracts to help manage price and production risks.
• Seven in 10 American farms have an operating profit margin in the “red zone,” indicating a high risk of financial problems.
• Farm income has declined almost 40 percent since 2013, and more than 40 percent of farms are now relying on income generated off the farm to make ends meet.

The crop insurance system that protects these family farms and makes forward contracting possible in today’s difficult financial environment was also mentioned in the report.

Two-thirds of midsize farms and three-fourths of large farms participate in crop insurance, the report found.

National Crop Insurance Services has traveled the country for the past year hearing first-hand from family farmers in Iowa to Colorado to North Carolina and elsewhere about their experiences. The message has overwhelmingly been that crop insurance is an invaluable tool for America’s farmers and ranchers, and that policymakers should “do no harm to crop insurance.”

Be sure to check out their stories and learn more about crop insurance’s importance to your state at www.cropinsuranceinmystate.org.

As policymakers, commodity leaders, and insurers gathered this week for the crop insurance industry’s annual convention, recent legislative changes to the federal crop insurance program was one of the top discussion topics.

The Agriculture Improvement Act of 2018, commonly known as the Farm Bill, included several provisions that strengthened crop insurance and solidified its position as an important risk management tool.

“Passing Congress with the largest margin of any farm bill in history, this legislation demonstrated that preserving the farm safety net is an issue that transcends partisan lines,” said National Crop Insurance Services (NCIS) President Tom Zacharias. “We thank Capitol Hill for listening to rural America and working diligently to ensure that crop insurance remains affordable and widely available for our farmers and ranchers.”

The Farm Bill strengthened crop insurance by directing research for new products, promoting coverage for underserved producers, and improving the availability and workability of various insurance programs.

NCIS staff Troy Brady and Mickey Paggi outlined some of the most significant changes in a recent article for Crop Insurance TODAY magazine, noting that these provisions “will increase crop insurance’s role as a key component of farm policy.”

Notable provisions included:

• Improvements to the Whole Farm Revenue Protection (WFRP) policy that will provide more meaningful risk protection, especially for small and beginning farmers.
• Additional research on topics including new irrigation practices, existing citrus fruit policies, and the development of policies to better address low-frequency, catastrophic losses due to weather events such as hurricanes.
• An annual review of research regarding the development of insurance for new crops and how to improve crop insurance coverage in existing programs.

“Speedy and accurate implementation will be important for farmers… as they look to their most important risk management tool to help rebound from the extreme weather and a slumping rural economy that plagued 2018,” the authors wrote.

NCIS will be working closely with the United States Department of Agriculture’s Risk Management Agency to efficiently put the Farm Bill’s crop insurance provisions into action.

More than 334 million acres of farmland were protected by crop insurance in 2018, a 20 million acre increase over 2017 and an all-time high. And, crop insurance came in $2 billion under original federal budget projections for the year.

Jim Korin, chairman of National Crop Insurance Services (NCIS) and president of NAU Country Insurance Company, noted these accomplishments, among others, in his opening remarks at the crop insurance industry’s annual meeting this week.

With more than 1.1 million crop insurance policies sold to farmers across the nation, Korin credited the growing popularity of crop insurance to the exceptional service provided by private-sector insurers and the unique working relationship they share with the government.

“The public-private partnership that defines crop insurance has been successful in providing the important safety net for our farmers and the rural areas where they live,” Korin said. He noted that the crop insurance industry has been able to quickly pay claims while routinely coming in below budget projections, saving taxpayers billions.

Under the successful crop insurance model, farmers invested in their own protection by paying $3.7 billion in premiums and shouldering a significant portion of losses through deductibles.

This public-private partnership was further reinforced with the overwhelming passage of a bipartisan Farm Bill in December that strengthened crop insurance and firmly rebuffed efforts by some critics to make the program less affordable and available to farmers.

“With everything that occurred during the year, nothing defined the world of agriculture more than the debate and passage of the 2018 Farm Bill,” said Korin. “This process saw congressional field hearings from coast to coast and a steady call from farmers across the nation to ‘do no harm’ to the crop insurance safety net.”

Larry Heitman, chairman of the American Association of Crop Insurers and senior vice president of NAU Country Insurance Company, also addressed the convention and said maintaining this kind of support from farmers will continue to be important moving forward.

“As tempting as it may be to relax until the next Farm Bill negotiations begin again, let’s remember our program is a target for those that want to redirect agricultural funds to their own causes or programs,” he told the group. “We must continue to maintain and strengthen our partnership with agriculture commodity associations and conservation and wildlife protection groups to work together for a coalition to benefit all Americans – rural and urban.”

Heitman and Korin explained that the industry’s attention will now turn to working with the U.S. Department of Agriculture to ensure a smooth implementation of the 2018 Farm Bill, while continuing to serve rural America.

Korin concluded, “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.”

Our nation’s farmers come from every walk of life. Our workforce should reflect that fact.

National Crop Insurance Services is exceptionally proud to help foster the next generation of America’s agricultural community and promote diversity through the NCIS 1890 Scholarship Program.

Since 2010, NCIS has distributed nearly two dozen scholarships to students at historically-black 1890 Land Grant Universities in order to assist these students in completing their education and preparing for a career in agriculture. This scholarship program is a key part of a broader effort to proactively increase diversity in the crop insurance industry in recognition of the vibrant and varied communities we serve.

This year, NCIS awarded scholarships to five students who had demonstrated their academic prowess and an interest in agriculture. These deserving recipients were highlighted in December’s issue of Crop Insurance Today magazine.

Scholarship recipient Aaron Dore, from McDonough, Georgia, is majoring in economics with a concentration in agribusiness and a minor in business logistics at Fort Valley State University. Notably, Aaron has made the Dean’s List while playing cornerback for the FVSU Wildcats and conducting student research on organic vegetables.

Aaron wasn’t the only FVSU Wildcat to receive an NCIS scholarship. Hailing from the town of Louisville, Georgia, Jerstashia Sims is hoping to use her degree in agricultural economics to help lift up others from economically depressed rural communities.

“There have been semesters where I couldn’t take many classes due to how much financial aid I had. I would like to thank [NCIS] because that scholarship helps get me closer to graduation,” Jerstashia said.

Ashli Holloway is majoring in animal science at Alcorn State University. Originally from Stockbridge, Georgia, Ashli plans on working in the animal care industry and has dedicated time during her summer vacations to attend the Veterinary Science Training, Education and Preparation Institute at Tuskegee University.

Fellow animal science major Mary Mitchell grew up in the tiny town of Kremlin, Oklahoma, population 255. Now a junior at Langston University, this NCIS scholarship provides Mary with unique opportunities to continue developing her exceptional leadership skills.

Wesley Adair Maximilian Benson, known to most as just Max, is from Ardmore, Oklahoma, and is studying natural resources management at Langston University. Max is a positive role model for his peers, volunteering to help students who are struggling in classes and promoting mutual respect among his classmates.

Each of these students will bring their unique understanding of the issues facing our rural communities to their future careers in agriculture. NCIS congratulates them for receiving this hard-earned scholarship opportunity and we look forward to celebrating all of their future accomplishments.