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ASA Urges Protection of Crop Insurance

Mar 14, 2013

pic-drought_monitor-031413In a letter to House and Senate Agriculture Committee leadership this week, ASA and a coalition of like-minded farm groups encouraged the advocacy of "strong, meaningful, and affordable" crop insurance protection for the nation’s farmers, and opposed any changes that would discourage producer participation or undermine private sector delivery. The letters come as both chambers are confronted with a need to reduce spending through the sequestration process.

"In agriculture, one thing is for certain: crop loss will occur in some part of the United States each year," wrote the groups. "The significant, widespread crop losses of 2011 and 2012 have clearly demonstrated the need for crop insurance protection and the public-private partnership of program delivery. Farmers, ranchers, their lenders, input suppliers and other stakeholders agree that crop insurance protection should remain a viable, affordable tool for managing risk."

The groups went on to underscore the shortfalls of piece-meal disaster bills after catastrophic events occur.

"Crop insurance… is a product selected in advance and tailored to the individual producer, with that producer choosing his or her product and protection level, and paying a premium for that coverage. In contrast, ad hoc disaster assistance is an after-the-fact form of assistance paid for entirely by the taxpayer that may help a producer survive a disaster but does not help manage risk. Importantly, because of the protection crop insurance provides, there were no calls for ad hoc disaster assistance in 2012 as there have been in the past."