Specialty crop insurance reform proposed by Oregon lawmakers

WASHINGTON, D.C. - Two members of Oregon's congressional delegation are backing legislation that would reform federal subsidies for crop insurance, incentivizing agents to write policies for smaller farms that grow specialty crops.

Democratic Reps. Andrea Salinas and Earl Blumenauer, along with Sen. Cory Booker, D-N.J., introduced the Insuring Fairness for Family Farmers Act in July.

While federal crop insurance is provided through private companies, the USDA compensates agents for each policy they sell with administrative and operating subsidies to cover costs. The size of the payments is currently based on a percentage of the premium - meaning the larger the premium, the more agents are paid.

Because larger farms have larger premiums, the system encourages agents to seek out and write policies for the biggest operations, according to the bill sponsors. That has resulted in under-coverage for small farms, with agents selling the top 3% of largest policies collecting 37% of total commissions.

Salinas, a member of the House Agriculture Committee tasked with molding the 2023 Farm Bill, has held several listening sessions around the Willamette Valley this year to gather input from farmers and industry representatives.

She said farmers growing specialty crops such as winegrapes and nursery plants repeatedly told her they didn't have crop insurance, leaving them vulnerable to damage from drought, wildfires and other natural disasters.

"It's really devastating for their operations," Salinas told the Capital Press.

The Insuring Fairness for Family Farmers Act would flip the script by changing the criteria for paying out administrative and operating subsidies.

Rather than basing them on premiums, they would be based on the complexity of each policy. Bonuses would be awarded for policies that cover farms of less than 180 acres, farms that grow multiple types of crops and farms that have never previously been covered by federal crop insurance.

Salinas said the issue boils down to fairness.

According to the state Department of Agriculture, one-third of Oregon's 37,200 farms are less than 10 acres. That is higher than the national average of 13.4%, yet Salinas said 89% of the Farm Bill supports about 150,000 of the largest farms.

"That feels very unethical," she said. "Small family farms are too often left out of the farm bill process despite being the backbone of Oregon agriculture."

In a statement, Booker said that by ensuring access to crop insurance for all types of producers, "we can promote a more resilient agriculture sector."

The bill has also garnered support from the nonprofit Farm Action Fund, which advocates for small family farms.

"American farmers of all sizes deserve a strong, robust safety net that allows them to withstand tough years, keeping them on their land so they can feed their neighbors and their communities," said Joe Van Wye, the group's policy and outreach director.

So far, Salinas said it has been harder than she thought to gain bipartisan support for the bill. But she added that "all ideas are on the table."

"I don't care how we get at this. I do know my growers need help," she said. "I'm eager to see what we can come up with."