Crop Insurance

Crop Insurance

David Sparks Ph.D.
David Sparks Ph.D.
Crop insurance providers recentlyy stated in a new educational video that crop insurance policies must remain affordable for farmers and ranchers or the entire farm safety net will fail. National Crop Insurance Services President Tom Zacharias explained that farmers help fund current farm policy by spending approximately $4 billion a year out of their own pockets to purchase policies and by shouldering a portion of losses in the form of deductibles before receiving assistance. " The reality is, if insurance bills get too expensive or deductible losses get too high, fewer farmers will sign up for policies and the whole system will suffer. If that happens, not only will it be more difficult for farm families to bounce back after disaster and costs that are currently being born by farmers and private insurance providers will shift back to the taxpayers."

Congress took steps in the 2014 Farm Bill to keep crop insurance affordable. Again, Zacharias: "Farmers receive discounts on the premiums that they pay for coverage. This includes discounts for new and beginning farmers looking to start a career in agriculture. Also, the new supplemental coverage that are now available under the farm bill help counterbalance a portion of the deductible losses." Very important stuff and now you know why I so often contact Joe Lynne Seufer who is spokesperson for the Farm service agency so often.

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