Crop Insurance Coalition Sends Letters Urging Administration, Lawmakers to Protect Crop Insurance

WASHINGTON, Feb. 19 -- The Crop Insurance and Reinsurance Bureau issued the following news release:

A group of around 60 national farm, lending, ag input, conservation, and crop insurance and reinsurance organizations, led by the Crop Insurance and Reinsurance Bureau (CIRB), sent letters to the Administration and key lawmakers opposing cuts to crop insurance during the upcoming budget process.

* Click here for letter to the House and Senate Budget Committees (http://cropinsurance.org/wp-content/uploads/2019/02/Crop-Insurance-Coalition-Budget-Letter.pdf)

* Click here for letter to USDA Secretary Sonny Perdue (http://cropinsurance.org/wp-content/uploads/2019/02/Crop-Insurance-Coalition-Budget-Letter-Perdue.pdf)

"USDA has projected that 2018 farm profitability will be the lowest in over a decade, and farm income dropped more than 45% in five years. An overreliance on budget savings from the agriculture community and from crop insurance more specifically will undermine rural economies. It's also important to note that in a time of uncertainty in the farming and ranching community - from natural disasters to trade wars to government shutdowns - the public-private partnership that is crop insurance has been a consistent and reliable risk management tool. The certainty of federal crop insurance also offers lenders the assurances they need to continue to provide capital to America's hard-working farmers and ranchers," the letters explain.

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Please contact CIRB Federal Affairs Vice President Tara Smith at [email protected] with any questions about the letters or the Crop Insurance Coalition.

* * *

February 19, 2019

Dear House and Senate Budget Committee Chairmen and Ranking Members:

As Congress develops and considers its budget proposals for the year, we respectfully urge you to protect crop insurance and recognize its central importance to farmers, lenders and all of rural America.

USDA has projected that 2018 farm profitability will be lower than it has been in over a decade, and farm income dropped more than 45% in five years. An overreliance on budget savings from the agriculture community and from crop insurance will unquestionably undermine rural economies. It's also important to note that in a time of uncertainty in the farming and ranching community - from natural disasters to trade disputes to government shutdowns - the public-private partnership that is crop insurance has been a consistent and reliable risk management tool. The certainty of federal crop insurance also offers lenders the assurances they need to continue to provide capital to America's hard-working farmers and ranchers.

The 2018 Farm Bill that was recently passed by Congress and signed by the President continued the emphasis on risk management from previous farms bills, and in doing so, protects the interests of American taxpayers. Farmers spend $3.5 to $4 billion per year of their own money to purchase insurance from the private sector. On average, farmers also must incur losses of almost 30 percent before their insurance coverage pays an indemnity. Crop insurance allows producers to customize their policies to their individual farm and financial needs. Federal crop insurance is based on fundamental market principles, which means higher risk areas and higher value crops pay higher premiums for insurance.

Cuts to crop insurance during this difficult time for rural America should be avoided. Farmers and lawmakers agree that crop insurance is a linchpin of the farm safety net and is crucial to the economic and food security of rural America. The importance of crop insurance was just reaffirmed less than two months ago with the passage and signing of the 2018 Farm Bill, and we urge you to oppose cuts to crop insurance during this year's budget process.

Sincerely,

Agricultural Retailers Association

American Agri-Women

American Association of Crop Insurers

American Bankers Association

American Farm Bureau Federation

American Farmland Trust

American Malting Barley Association

American Property Casualty Insurance Association

American Pulse Association

American Seed Trade Association

American Sesame Growers Association

American Society of Farm Managers and Rural Appraisers

American Soybean Association

American Sugar Alliance

American Sugarbeet Growers Association

Association of Equipment Manufacturers

Corn Refiners Association

Crop Insurance and Reinsurance Bureau

Crop Insurance Professionals Association

Ducks Unlimited

Environmental Defense Fund

Farm Credit Council

Independent Community Bankers of America

Independent Insurance Agents & Brokers of America

National Association of Mutual Insurance Companies

National Association of Professional Insurance Agents

National Association of State Departments of Agriculture

National Association of Wheat Growers

National Barley Growers Association

National Corn Growers Association

National Cotton Council

National Council of Farmer Cooperatives

National Crop Insurance Services

National Farmers Union

National Grain and Feed Association

National Milk Producers Federation

National Oilseed Processors Association

National Peach Council

National Potato Council

National Rural Lenders Association

National Sorghum Producers

National Sunflower Association

Panhandle Peanut Growers Association

Pheasants Forever

Quail Forever

Rural & Agricultural Council of America

Southern Peanut Farmers Federation

Theodore Roosevelt Conservation Partnership

U.S. Apple Association

U.S. Canola Association

U.S. Dry Bean Council

U.S. Durum Growers Association

U.S. Rice Producers Association

USA Dry Pea & Lentil Council

USA Rice

United Fresh Produce Association

United States Cattlemen's Association

Western Growers

Western Peanut Growers Association

Women Involved in Farm Economics

* * *

February 19, 2019

Dear Secretary Perdue:

As the Administration develops and considers its budget proposals for the year, we respectfully urge you to protect crop insurance and recognize its central importance to farmers, lenders and all of rural America.

Your department has projected that 2018 farm profitability will be lower than it has been in over a decade, and farm income dropped more than 45% in five years. An overreliance on budget savings from the agriculture community and from crop insurance will unquestionably undermine rural economies. It's also important to note that in a time of uncertainty in the farming and ranching community - from natural disasters to trade disputes to government shutdowns - the public-private partnership that is crop insurance has been a consistent and reliable risk management tool. The certainty of federal crop insurance also offers lenders the assurances they need to continue to provide capital to America's hard-working farmers and ranchers.

The 2018 Farm Bill that was recently signed by the President continued the emphasis on risk management from previous farms bills, and in doing so, protects the interests of American taxpayers. Farmers spend $3.5 to $4 billion per year of their own money to purchase insurance from the private sector. On average, farmers also must incur losses of almost 30 percent before their insurance coverage pays an indemnity. Crop insurance allows producers to customize their policies to their individual farm and financial needs. Federal crop insurance is based on fundamental market principles, which means higher risk areas and higher value crops pay higher premiums for insurance.

Cuts to crop insurance during this difficult time for rural America should be avoided. Farmers and lawmakers agree that crop insurance is a linchpin of the farm safety net and is crucial to the economic and food security of rural America. The importance of crop insurance was just reaffirmed less than two months ago with the passage and signing of the 2018 Farm Bill, and we urge you to oppose cuts to crop insurance during this year's budget process.

Sincerely,

Agricultural Retailers Association

American Agri-Women

American Association of Crop Insurers

American Bankers Association

American Farm Bureau Federation

American Farmland Trust

American Malting Barley Association

American Property Casualty Insurance Association

American Pulse Association

American Seed Trade Association

American Sesame Growers Association

American Society of Farm Managers and Rural Appraisers

American Soybean Association

American Sugar Alliance

American Sugarbeet Growers Association

Association of Equipment Manufacturers

Corn Refiners Association

Crop Insurance and Reinsurance Bureau

Crop Insurance Professionals Association

Ducks Unlimited

Environmental Defense Fund

Farm Credit Council

Independent Community Bankers of America

Independent Insurance Agents & Brokers of America

National Association of Mutual Insurance Companies

National Association of Professional Insurance Agents

National Association of State Departments of Agriculture

National Association of Wheat Growers

National Barley Growers Association

National Corn Growers Association

National Cotton Council

National Council of Farmer Cooperatives

National Crop Insurance Services

National Farmers Union

National Milk Producers Federation

National Oilseed Processors Association

National Peach Council

National Potato Council

National Rural Lenders Association

National Sorghum Producers

National Sunflower Association

Panhandle Peanut Growers Association

Pheasants Forever

Quail Forever

Rural & Agricultural Council of America

Southern Peanut Farmers Federation

Theodore Roosevelt Conservation Partnership

U.S. Apple Association

U.S. Canola Association

U.S. Dry Bean Council

U.S. Durum Growers Association

U.S. Rice Producers Association

USA Dry Pea & Lentil Council

USA Rice

United Fresh Produce Association

United States Cattlemen's Association

Western Growers

Western Peanut Growers Association

Women Involved in Farm Economics.