cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Member

Who Do You Trust to Purchase Crop Insurance?

With the Farm Bill due to be re-written this year (should Congress actually decide to work together enough to pass a piece of legislation) there will be many forces at work to craft legislation to their special interest.  Certainly more attempts at cutting the USDA budget will be at the forefront.  We also can be assured that almost none of the budget cuts will come from the entitlement programs that consume the lion's share of the USDA budget, (i.e. Food stamps, WIC, etc.) will not be touched.  Last year, during Congress' Budget Reconciliation USDA, in "stealth mode" cut nearly $8billion from their budget.  This was done by cutting the compensation Approved Insurance Providers(AIP's) were paid for delivering crop insurance products to farmers.  Not only was company compensation lowered, but USDA's Risk Management Agency (RMA) dictated to the AIP's a fixed, lower level of compensation to agents delivering the service of their policies to farmers.  I use the term "stealth" because very few farmer/voters knew these cuts were even made.

 

With that background on an issue I believe farmers should rightly be concerned, there's another shoe that's about to drop.  Last week, prior to their annual Washington D.C. Legislative conference, the National Assn. Of FSA State and County Employees (NASCOE) revealed a study they commissioned, done by Informa Economics, which purports to save the American Tax Payer vast sums by removing the administration of USDA's Crop Insurance programs from private enterprise,  and having it delivered by FSA employees.  The information was an "Action Alert" for NASCOE members to contact the congressional delegation.

 

As a farm operator the past 40 years, and a crop insurance agent the past ten years, this issue has long been on collision course.  The upcoming Farm Bill debate, with further obvious cuts in USDA programs a likely outcome,  FSA employees rightly question how long their positions will be needed.  Surely, haven't you've questioned why you must report your crop acres to two government agencies who admittedly share their data? 

 

My question, "Who do you want to sit down with to develop an effective risk management plan?"  If left unchallenged, I believe the current Washington attitude of, "government can provide" will win out.  To that I simply ask you to look at the United States Postal Service.  If government can best provide, why do we have UPS, FEDEX and Email?  Times they are a-changin'.

0 Kudos
25 Replies
Highlighted
Senior Advisor

Re: Who Do You Trust to Purchase Crop Insurance?

Ok lets look at the postal system.

 

Does fedex or UPS deliver aletter for less than 50 cents and will they stop at your place six days a week to see if you have another letter to go out?

 

If private enterprise is so great why doesn't the private insurers offer an affordable crop insurance product without the government subsidies? 

 

I hope that federal subsidized crop insurance is abandoned. If our country cannot afford to subsidize health insurance to treat sick poor people we sure as hell can't afford to subsidize crop insurance for millionaire farmers. And politically minded insurance salesmen are far down on the list.

0 Kudos
Highlighted
Veteran Contributor

Re: Who Do You Trust to Purchase Crop Insurance?

The Postal Service should have adapted years ago instead of just continuing to maintain jobs. I completely agree that we should not subsidize either crop insurance OR health insurance. 

0 Kudos
Highlighted
Senior Advisor

Just say NO! to FSA

 
0 Kudos
Highlighted
Senior Advisor

Re: Who Do You Trust to Purchase Crop Insurance?

Maybe the operations of these mentioned could be preformed by a large company like maybe  m ighty  f ine global   ?  Seems to me Fed X and the  brown truck use the tax payer roads as the postal system--- In short  ""careful what one wishes for "" ---

0 Kudos
Highlighted
Senior Advisor

Re: Just say NO! to FSA

I hope you get your wish. A non subsidized insurance product from insurance carriers. They can offer that today to compete with the subsidized product. Just take the business away from FSA. Why haven't the privates done that already as they are so efficient?

0 Kudos
Highlighted
Senior Advisor

Re: Just say NO! to FSA

 

 

0 Kudos
Highlighted
Senior Advisor

Re: Just say NO! to FSA

I don't want the usda involved at all in crop insurance and I sure as heck don't want usda money

going to private insurers. If private insurers are so efficient and so great let them have the profit and all the risk.

 

If farmers can't afford it, TOUGH!

0 Kudos
Highlighted
Senior Advisor

Re: Just say NO! to FSA

 
0 Kudos
Highlighted
Advisor

Re: Who Do You Trust to Purchase Crop Insurance?

The cut to crop insurance subsidies was not done in secret, but very high profile in the news.  They took billions from the pool and redistributed it to other non-farm programs.  Commodity organizations were very aware of this budget accounting gimmick and made many protests about it.  Check your state association for information on this.

 

As for the FSA employees trying to make a move, I suggest you take another hard look at the informa study before making conclusions.  This was a real concern, for sure, but the study suggests there are some things the FSA can do to streamline crop reporting for both FSA and Crop insurance purposes.  They do not desire to take over the actual "agent in the field" business, but have suggestions to wring efficiencies out of the record keeping side.

0 Kudos