Page 9 - October2017

INDUSTRY

“Crop Insurance is Working,

Don’t Screw it Up”
By Kirsten Davis

During the annual Farm Progress Show in Decatur a past 39 years added together of my husband’s farming
listening session was hosted by US House Agriculture career,” said Linda Carlton-Huber of C F & H Insurance
Committee. The following legislators were present: Cheri Agency, Inc.
Bustos (D), Rodney Davis (R), Glenn Thompson (R),
Chairman-Mike Conway (R), Collin Peterson (D), Mike Bost Both Carlton-Huber and Greg Sandrock, IIA of IL State
(R), Darin LaHood (R). National Director, advocated for the Farm Bill and
impressed upon the House Committee the importance
The town hall style meeting gave the agriculture of that, crop insurance, amendments to conservation
community the opportunity to discuss the future of farming, compliance, opposition of the AFFIRM Act and the
how they are being impacted by legislation and issues impact of the farm community’s success on Illinois’ entire
within the farm community. Crop insurance remained economy.
frontal in this discussion. Numerous farmers spoke on
their personal experiences with crop insurance and the “In 2016, almost $92 million in indemnities were paid to
importance of having a solid farm bill that increases Illinois farmers for losses incurred above and beyond their
protections for farmers. Community members spoke deductibles, which average about 25%,” said Sandrock .
on natural disasters and their potential impact on crop
production and Illinois economy. Crop insurance is obviously an extremely important
topic to the farming and insurance community; many
“I have been a partner in farming and insurance since the participants expressed their concerns. One a participant,
1990’s. During that time I have seen all types of weather, said to the legislators, “Crop insurance is working, don’t
and conditions seem to becoming more and more volatile. screw it up.”
Just this past spring we had to replant more acres than the
See the following article for a detailed description of the
proposed amendments to the Federal Crop Insurance
Program.

Crop Insurance in the Crosshairs

by Jen McPhillips
The Government Accountability Office (GAO) released In response to the GAO study, the Big “I” released a
a report on the cost of implementing the Federal Crop statement with the DC Crop Coalition refuting the GAO’s
Insurance Program (FCIP) - and it sounded familiar. claims and highlighting the need for a strong crop program
Findings from the report harken back to the 2015 budget that is accessible to all farmers across the country.
conflict, when the Big “I” and other crop insurance industry
advocates fought to prevent a $3 billion cut to private- As a result of the GAO report, Rep. Earl Blumenauer
sector delivery of crop insurance. (D-Oregon) filed an amendment to the House
Appropriations package that imposes a payment limit
The GAO report recommends repealing the “sideboard” of $125,000 on the aggregate of commodity payments,
language in the 2014 Farm Bill which prevents the United conservation payments and crop insurance premium
States Department of Agriculture from taking money discounts. The Big “I” has always opposed a cap on
out of crop insurance through the Standard Reinsurance premium discounts because they can hinder a farmer’s
Agreement (SRA) process. Once the sideboard language ability to purchase adequate coverage for their farm. The
is repealed, GAO recommends renegotiating the SRA to House Rules Committee is expected to meet early next
decrease the target rate of return for companies—the exact week to develop a structured rule for the appropriations
proposal that was considered in 2015. package that must be passed before the end of September.
At this point, there is no guarantee that the amendment
The report also suggests changing the amount of risk will be considered on the floor, since some members of
companies retain versus the amount the government Congress may be reluctant to reopen the Farm Bill in the
retains. Finally, the report recommends adjusting the way appropriations process.
administrative and operating costs are calculated to level
out fluctuations in payments caused by changes in crop The Big “I” and crop company partners prepared talking
prices. Revising the administrative and operating cost points and additional materials if it becomes necessary to
baseline will have a direct impact on agent commissions. engage Congress on this issue. Stay tuned to future editions
of the weekly News & Views e-newsletter for updates on
the status of the amendment.

Jen McPhillips is Big “I” Senior Director, Federal
Government Affairs
october 2017 insight 9