WASHINGTON, DC (July 20, 2022) – Today, Crop Insurance and Reinsurance Bureau (CIRB) member Bob Haney testified in front of the House Agriculture Subcommittee on General Farm Commodities and Risk Management on the importance of crop insurance and the vital role it plays in providing risk management to farmers and ranchers across the country. Haney, Executive Chairman of Approved Insurance Provider (AIP) AgriSompo North America, stressed the importance of continued support for the current “3-legged stool” crop insurance model, as well as continued flexibility for farmers to ensure coverage allows them to make the best decisions for their business and the environment alike.

Crop insurance, in its current form, is designed through a model in which AIPs and the federal government share in the risk of the policies. Farmers pay a premium and must meet a deductible before receiving a payment. Thereby, all three parties have a financial stake in ensuring the success and integrity of the program.

“This ‘3-legged stool’ concept is the key to the success of the crop insurance program, which is envied around the world as a fair and successful means of supporting agricultural production and our food supply,” said Haney. “As it currently stands, crop insurance successfully meets the needs of hundreds of thousands of farmers, and we believe the program can be used to solve future challenges in agriculture.”

Crop insurance allows farmers and ranchers, of diverse scale and business model, to evaluate their needs and choose a product that works for them. This flexibility to mitigate risk has direct impact on growers’ ability to invest in and implement climate-smart practices.

“As an industry, we want to continue to be farmers’ first line of defense against climate change, while offering them the flexibility to implement conservation practices in a way that maintains the integrity of the program,” said CIRB Deputy Executive Vice President Tara Smith.

In his testimony, Haney shared that maintaining the intended structure of the program, safeguarding current funding, and incentive-based options are essential as lawmakers discuss the intersection of climate and crop insurance.

“Crop insurance is a critical tool for farmers as they adapt to changing climate pressures. Weakening the program in any way will do more harm to farmers coping with weather and climate challenges, and will only increase the need for ad-hoc disaster programs,” said Haney.

As conversations regarding the upcoming farm bill continue, CIRB stands ready to ensure that crop insurance, as it currently stands, remains a viable tool for farmers and ranchers across the country.

 

About CIRB:

Founded in 1964 and headquartered on Capitol Hill, the Crop Insurance and Reinsurance Bureau (CIRB) is proud to provide unparalleled advocacy, support, and membership services to the crop insurance and reinsurance community. Today, CIRB members provide a vital component of the farm safety net, writing policies in every state and providing billions of dollars in crop protection. Learn more about us at www.cropinsurance.org. To learn more about CIRB’s work, or to get involved, please contact CIRB staff.

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WASHINGTON, DC (March 29, 2022) – The President this week released his proposed Fiscal Year (FY) 2023 budget that fully funds the federal crop insurance program in recognition of the indispensable role that crop insurance plays in the farm safety net.

The release of the FY 2023 Budget follows a letter sent to OMB and the Secretary of Agriculture by 55 farming, banking, and conservation organizations asking that the administration protect crop insurance from harmful budget cuts.

The American Association of Crop Insurers, Crop Insurance and Reinsurance Bureau, Crop Insurance Professionals Association, Independent Insurance Agents and Brokers of America, National Association of Professional Insurance Agents, and National Crop Insurance Services released the following joint statement:

“America’s farmers and ranchers feed our nation, grow the fibers that clothe us, and provide an important economic driver for our rural communities. Over the past several years, crop insurance has helped farmers navigate the challenges posed by weather disasters, supply chain disruptions, and uncertain markets. The Administration has recognized the importance of crop insurance as a critical risk management tool by fully funding crop insurance in its FY 2023 budget.

“The crop insurance program works for farmers and taxpayers alike:

  • By delivering aid quickly and efficiently, crop insurance continues to earn the trust of America’s farmers, protecting more than 90 percent of America’s planted crop land acres.
  • Farmers invest in their own protection. Last year, farmers spent $5 billion to purchase crop insurance and then shouldered a significant portion of losses through deductibles.
  • Crop insurance complements farmers’ efforts to invest in conservation and climate-smart farming practices.
  • The federal government spends less than a quarter of 1% of its budget on the farm safety net, including crop insurance, making this a worthwhile investment to protect the world’s most affordable and safe food and fiber supply.

“We appreciate this Administration for fully funding crop insurance in its proposed budget. We urge Congress to follow suit by protecting and strengthening crop insurance.”

About CIRB:

Founded in 1964 and headquartered on Capitol Hill, the Crop Insurance and Reinsurance Bureau (CIRB) is proud to provide unparalleled advocacy, support, and membership services to the crop insurance and reinsurance community. Today, CIRB members provide a vital component of the farm safety net, writing policies in every state and providing billions of dollars in crop protection. Learn more about us at www.cropinsurance.org. To learn more about CIRB’s work, or to get involved, please contact CIRB staff.

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WASHINGTON, DC (January 28, 2022) – Fifty-five partners of the Crop Insurance Coalition, representing farmers, lenders, agricultural input providers, and conservation groups sent letters to key lawmakers and the Administration opposing cuts to crop insurance during the upcoming fiscal year 2023 budget process.

 

 

“It is no accident that the most recent farm bills emphasized risk management, and in doing so, protected the interests of American taxpayers.  Farmers spend as much as $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 and policies are based on fundamental market principles, which means higher risk areas and higher value crops pay higher premiums for insurance. Crop insurance and its links to conservation further ensure that the program is a good investment for taxpayers,” the letter explains.

 

Please contact CIRB Deputy Executive Vice President Tara Smith at tsmith@torreydc.com with any questions.

 

About CIRB:

Founded in 1964 and headquartered on Capitol Hill, the Crop Insurance and Reinsurance Bureau (CIRB) is proud to provide unparalleled advocacy, support, and membership services to the crop insurance and reinsurance community. Today, CIRB members provide a vital component of the farm safety net, writing policies in every state and providing billions of dollars in crop protection.  Learn more about us at www.cropinsurance.org.  To learn more about CIRB’s work, or to get involved, please contact CIRB staff.

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