The Big “I” expects that as the 2018 Farm Bill moves through the legislative process, Congress will consider amendments that could be harmful to the FCIP.
Last month, the U.S. House of Representatives Committee on Agriculture voted along party lines to advance H.R. 2, “The Agriculture and Nutrition Act,” by Committee Chairman Mike Conaway (R-Texas). The House is expected to consider the bill in May. However, controversy related to the Supplemental Nutrition Assistance Program (SNAP) and other issues make it hard to predict what will happen.
The U.S. Senate is also working on its own version of the Farm Bill.
The Federal Crop Insurance Program (FCIP) sees minimal changes in the current version of H.R. 2. The FCIP generally has broad bipartisan support in both the House and Senate at the agriculture committee level. Nonetheless, numerous members of Congress and outside groups are stepping up attacks on the program.
For example, the Republican Study Committee, a conservative caucus in the House, recently proposed reducing the premium discount that farmers receive by about 50% and eliminating all administrative and operating reimbursements to crop insurance companies. Insurance agent commissions are paid from administrative and operating reimbursements.
Meanwhile, in the Senate, Sens. Jeanne Shaheen (D-New Hampshire), Jeff Flake (R-Arizona) and Pat Toomey (R-Pennsylvania) recently introduced a new bill to cap premium discounts for farmers.
Given these developments, the Big “I” expects that as the 2018 Farm Bill moves through the legislative process, Congress will consider amendments that could be harmful to the FCIP.
The Big “I” will oppose any amendment to the Farm Bill, proposal or legislation that would increase the cost of crop insurance to farmers; reduce the number of farmers eligible for crop insurance, thereby destabilizing the FCIP risk pool; or weaken the efficient and effective private-sector delivery of crop insurance. Last week, the Big “I” and more than 60 other insurance and agricultural groups sent a letter to every member of the House urging them to support crop insurance.
The Big “I” supports the FCIP because crop insurance is critical for the security of America’s economy and food supply. Independent agents play a vital role in this successful private-public partnership.
Jennifer Webb is Big “I” federal government affairs counsel.
