ASA and more than 60 members of the Crop Insurance Coalition are urging Congress and the administration to oppose harmful cuts to the federal crop insurance program during the upcoming fiscal year 2024 budget and appropriations processes.
The federal crop insurance program is administered through USDA’s Risk Management Agency. Federal crop insurance is structured so that private insurers, the federal government, and individual farmers have a financial stake in the policy, thus ensuring the integrity of the program.
Crop insurance is a vital tool for soy growers and other ag producers. In letters sent to the Hill this week, the groups emphasized how a strong safety net is even more imperative; growers have faced mounting uncertainties ranging from extreme weather, market disruptions due to the pandemic, and more over the past several years.
The groups highlighted how crop insurance supports conservation efforts and, in turn, is a good investment for taxpayers.
“Crop insurance allows producers to customize their policies to their individual farm and financial needs, and policies are based on fundamental market principles, which means higher risk areas and higher value crops pay higher premiums for insurance,” the groups state.
According to a news release issued by the coalition, farmers and ranchers spent more than $6 billion in 2022 to purchase crop insurance policies from the private sector through a USDA-regulated program. Private sector companies compete for farmers’ business and quickly deliver assistance to farmers, typically within just a few weeks. The structure of the crop insurance program allows producers to customize their policies to their individual farm and financial needs while also facilitating additional opportunities for producers to engage in conservation practices.
ASA will continue to advocate for this critical risk management tool, which serves as a farmer’s first line of defense against climate change and other disasters, to ensure a reliable food supply and sound safety net for U.S. soy growers.