Senate Agriculture Hearing Highlights Crop Insurance

The Big “I” is at the center of the debate as Congress begins deliberating key components of the 2018 Farm Bill, such as the Federal Crop Insurance Program (FCIP).

This week, the U.S. Senate Committee on Agriculture, Nutrition and Forestry held a hearing, “Commodities, Credit, and Crop Insurance: Perspectives on Risk Management Tools and Trends for the 2018 Farm Bill.” The purpose of the hearing was to outline goals and priorities for the next Farm Bill.

At the hearing, the Big “I” submitted testimony which focused on preserving the budget baseline for the FCIP and opposing harmful legislation aimed at cutting and capping the premium incentives some farmers receive for purchasing adequate coverage for crop insurance.

The testimony also highlighted the role of the agent as the exclusive sales force of the FCIP, as well as the importance of preserving the program’s integrity. On that note, the association highlighted the anti-rebating clause first included in the 2011 Crop Insurance Handbook. The inclusion of this clause was spearheaded by the Big “I” Crop Insurance Task Force in 2010.

Finally, the testimony focused on the diversity of the crop insurance program and included examples of editorials by Big “I” crop agents published in Maine, New York and Vermont newspapers in order to show the importance of crop insurance as a risk management tool across the country—not just in the Midwest. Program diversity is key to FCIP success, especially because crop insurance treats all farmers equally, regardless of operation, size, region or crop.

Farmers from across the country also testified about their continued support for the private-sector delivery of crop insurance and for affordable and effective crop insurance for producers of all sizes, crops and regions. Farmers also asked Congress to oppose efforts to harm crop insurance in the 2018 Farm Bill, including cuts to the private-sector delivery of crop insurance, reductions to premium discounts and arbitrary means testing participation.

At the end of the hearing, Chairman Pat Roberts (R-Kansas) said when it comes to reauthorizing the next Farm Bill, the “earlier the better.” He also said he will work with the other members of the committee to preserve the current status of the crop program as Farm Bill negotiations continue.

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