Last week legislation was introduced in both chambers of Congress that would reduce the target rate of return for crop insurance companies from the current target of 14.5% to 9.6%. It’s another direct attack on private sector delivery of crop insurance  similar to the proposal that the crop insurance industry successfully fought back in 2015 (then the proposed target was 8.9%) and it’s identical to a recommendation made by GAO about two weeks ago.

Sens. Jeff Flake (R-Arizona) and Jeanne Shaheen (D-New Hampshire) and Reps. John Duncan (R-Tennessee) and Ron Kind (D-Wisconsin) introduced S. 1773 and H.R. 3698, respectively. The goal of this legislation is to limit the overall rate of return for crop insurance providers and remove the budget neutrality requirement in the Standard Reinsurance Agreement.

This legislation joins a host of other bills aimed at cutting and capping the Federal Crop Insurance Program at a time when farmers need this safety net the most. Commodity price volatility coupled with an uncertain and unpredictable weather pattern requires farmers to purchase adequate coverage for their farmland. As Congress debates the Farm Bill, the Big “I” will continue to be a leader in defending this program for farmers across the country.

In related news, the Big “I” signed on to an agriculture industry letter with farm groups and crop insurers urging U.S. Senate Agriculture Committee leaders to quickly confirm both Bill Northey as U.S. Department of Agriculture (USDA) Undersecretary of Farm Production and Conservation, and Gregory Ibach as USDA Undersecretary for Marketing and Regulatory Programs. The agencies within the Marketing and Regulatory Programs mission area are critically important to ensuring effective marketing and oversight of agricultural products across the country.

Jen McPhillips is Big “I” vice president of federal government affairs.